Housing Prices on the Rise as Borders Open Up.

Queensland could soon be the largest beneficiary of a property boom unlike anything that has been seen since 2007. Warmer climates and a lower total cost of living than either of the usual suspects Sydney and Melbourne have increasingly bathed Queensland in a new light with property prices expected to skyrocket as people choose to move to the Sunshine State from elsewhere in Australia.

With home loan pauses being resumed, government payments such as JobKeeper and JobSeeker either shortly coming to an end or being significantly reduced and our economy falling into recession, it is no stretch of the imagination to expect that house prices could fall due to the fact that unfortunately some people will no longer be able to service their home loans. This could cause as influx of property to hit the market to be snapped up by prospective homeowners and investors. However, as of yet, this influx is nowhere to be seen. Currently, the demand for housing far exceeds the amount of property for sale. This is a great indicator that housing prices will indeed largely grow as supply is much lower than the current demand.

Housing prices in Queensland sit at an average of $500,000, whereas Sydney has an average house price of over $900,000. This increased affordability along with rock bottom interest rates is obviously being perceived by many to be opportunity of a lifetime. Experts are saying that the boom will be nationwide excluding Sydney and Melbourne. The trend was already apparent before the COVID-19 Pandemic, with Queensland leading the charge, and is now increasing exponentially because of it due to entire state lockdowns and many people being forced to work from home.

Many people are now even being offered permanent work from home positions as some businesses are realising the benefit it can bring for their business and their employees. Now that people are home more, it is becoming increasingly important to love where you live. Places such as the Sunshine Coast is already a popular location for holiday living as it’s close to some of the country’s best beaches. If you’re going to work from home more often, the tempting allure of doing it by the beach or somewhere with an amazing mountain view becomes very important pretty quickly.

This boom is materialising before our very eyes, and this is even before we reap the benefits that will arise from the Federal Budget 2020-21. As we come to the end of 2020 it is beginning to look like a great idea to start looking for a way into the real estate market so you too can start utilising these benefits that we have already started seeing. 

If you are thinking of selling your home and would like to get a Free Market Appraisal get in touch today.

Carmel Fulton

Licensed Real Estate

0488 443 239 | carmel@tmestateagents.com.au

www.tmestateagents.com.au

Buderim Mall

Shop 7, 86 Burnett Street, Buderim QLD 4556 | 07 5373 5077

The Federal Budget and Real estate

Now that the Federal Budget 2020-21 has been announced, we now know how the proposals are going to affect the real estate industry. The results were generally positive with the main aim being to stimulate the economy and begin reversing the effects of the pandemic recession most of the world has found itself in. Keep reading on to find out how the budget could affect you.

The First Home-Owners Grant

The news of the additional 10,000 places to receive the FHOG was a welcome outcome. Eligible first homeowners will still be able to receive $15,000 but also only require a 5% deposit to prevent incurring mortgage lenders insurance as oppose to the usual 20% required, with the government guaranteeing the other 15%.

Unfortunately, the HomeBuilder Grant was not extended, still scheduled to end on December 31st, 2020.

New Housing Developments

Another key takeaway from the budget is the $1 billion cash injection the government will be providing to support new construction builds for affordable housing. This will complement the First Home-Owners Grant nicely since the grant is for new homes only.

Indigenous Home Ownership Program

The government has also announced another $150 million boost in funding to help indigenous Australians buy their first home. With a waiting list of over 1 year, the boost is hoping to provide another 360 concessional home loans for new homes in regional areas over the next 2 years.

Granny Flats

The policy regarding granny flats is set to be revised so owners building them will not incur capital gains tax which could sway many eligible people that otherwise wouldn’t have built one. These policy amendments not only increase potential sale profits for the owner but will also provide another incentive to hire construction workers creating more jobs.

Along with the above, that directly impact the real estate market, there are a few other items from the agenda that indirectly affect it as well. These include:

• Bringing forward the planned taxation cuts that were originally set to take effect from July 2022. They will now be backdated and take effect from July 2020.

• The low-income tax offset will be increased from $445 to $700 and be brought forward the 2020-21.

• There are new incentives for businesses to hire young people aged between 16-35 which will absorb some of the initial downturn in employment due to the pandemic.

• Any businesses hiring new apprentices will be eligible for a 50% wage subsidy. Just like the above, this will help reduce unemployment rates and bring more money into the economy.

All of these measures will help the real estate market by putting more cash into the pockets of Australians thereby increasing their capacity to save, making it easier to enter the property market for many more people.

This increase in funds will also help the Real estate industry further by helping renters pay their rent on time and prevent them from falling into rent arrears. Coupled with the unmoving extremely low interest rates, existing investors and homeowners alike will have a much easier time servicing their mortgage repayments with increased savings.

All of these positive outcomes are sure to provide significant assistance to all Australians within and hoping to enter the property market with buyers and sellers both gaining huge advantages.  

If you have been thinking of selling/buying or would like more information regarding how we can evaluate property or have any questions, please don’t hesitate to contact me.

Carmel Fulton

Licensed Real Estate

0488 443 239 | carmel@tmestateagents.com.au

www.tmestateagents.com.au

Buderim Mall

Shop 7, 86 Burnett Street, Buderim QLD 4556 | 07 5373 5077