COULD it be possible that the Ipswich housing market is getting back to normal? That depends, of course, on how you define ‘normal’.
Our big cities, where demand is high and supply constrained due to a lack of land, have had the most confident growth and sustainable prices.
Holiday markets, rural and regional areas — where demand is always more unpredictable and inconsistent — felt the pinch most.
I was in Britain recently which is now showing signs of having come through the worst of it. Interest rates are low but funding is still a challenge. Nevertheless, people are buying, selling and moving again. There are no record breaking prices — yet — but sales are being achieved at fair values.
Like here, much housing stock has not had substantial capital growth for five to seven years. It only seems terrible because growth levels in recent decades were high double digits. But let’s face it, we have to recognise that that is just not normal. The US is the housing market of extreme diversity. Houses can sell for $10,000 but you often find the tax you owe is almost half of that. And two years later, the value of the property has dropped to $7000 as high stock levels continue to push prices down.
Meanwhile, in New York demand is on the rise again and prices are pushing up. Likewise in San Francisco, where Silicon Valley salaries are again pushing up the prices of homes.
Away from the biggest cities, however, are places with high foreclosure rates and property prices in freefall. So the conclusion to draw out of all of this is that all three markets are behaving “normally”.
Regardless of whether you are in Australia, Britain or the US, there are high-demand areas and places that haven’t seen a value gain in half a decade.
Markets are driven by localised factors as well as macro-economic trends and this gives some context for why the market is behaving the way it is.
But in 2013 we do have something that was not always “normal” — the amount of information you can access to help decide on the health of any real estate market.
If you are a property nerd like me, sites such as realestate.com.au here and in Britain rightmove.co.uk are a treasure trove. In the US my favourite site is trulia.com, which provides the market for properties and the official valuation — often nowhere near the asking price.
I love pouring over these sites and seeing what’s on the market — it’s all good fun.
And that’s perfectly normal, isn’t it?
More Ipswich suburbs to be switched on by the NBN
Queensland Says No New Taxes on Foreign Property Buyers in Bjelke Petersen-like Strategy
The Queensland government has ruled out introducing new taxes on foreign buyers of residential real estate.
They are the only state that actually monitors foreign investment, so were in the box seat to implement such a tax regime.
The rejection comes after the populist Victoria Labor government’s recent budget unveiled a new tax regime that will seek to tax foreign buyers and foreign owners.
Queensland has vowed not to follow Victoria’s lead and introduce any new taxes on foreign property investors.
Treasurer Curtis Pitt said Queensland welcomed foreign property investment.
“We’re ruling out any stamp duty surcharges for foreign investors who purchase a house in Queensland,” said Pitt.
“We’re also ruling out any land tax surcharge for foreign investors in this state.”
The Victorian state budget, revealed on Tuesday, included a 3%t stamp duty surcharge for homes from July and land tax increases of 0.5% from 2016 for offshore-based investors.
News Ltd reported Queensland executive director of the Property Council, Chris Mountford saying the action will strengthen Queensland’s position on the global investment map.
“In particular it creates a compelling case to invest in Queensland over Victoria.”
Nothing new for Queensland as that was how former premier Joh Bjelke Petersen saw the state into an upswing when Queensland didn’t have death duties like other states.
It was in 1977 when the Premier of Queensland Joh Bjelke Petersen abolished death duties and a wave of Australia’s elderly headed towards the Gold Coast with the high rise following as dying in Queensland became a tax avoidance scheme and Surfers Paradise became a retirement haven.
By JONATHAN CHANCELLOR via propertyobserver.com.au
16 Questions to Ask About Handling Property Management Alone
Problems are always there in property management. It may sound so easy at first but it won’t anymore once you start encountering big problems along with it.
DIY property management seems simple – and it can be – until something goes wrong.
The reality is that not everyone has the skills, time and temperament to successfully manage their own investment, particularly one of this size and scale.
With 20 year’s experience in landlord insurance, I can tell you that tenancies being self-managed by investors go pear-shaped more often than assets that are managed by a professional – they are subject to more claims.
Why? Tenants with a poor record deliberately target private landlords who don’t have access to industry databases recording people who have defaulted in the past. (more…)