Real Estate FROM COAST TO COUNTRY
S p r i n g s e l l i n g s e a s o n i s a b o u t t o h e at u p !
By Jo Kennett THINGS ARE about to heat up faster than ever as the spring selling season opens soon, with two major factors affecting the property outlook right now across the nation, and one local agent suggesting a reduction in capital gains tax might encourage investors to sell and free up supply. Falling interest rates and the prospect of more in the future has seen increased buyer activity, with local agents saying there had already been a “huge increase in demand from first home buyers” for more affordable homes. According to Senior PropTrack economist Anne Flaherty, in 2020 when the cash rate fell to just 0.1 per cent, it triggered one of the fastest periods of property price growth in Australia’s history. “The week following the February cut, realestate.com.au recorded the highest number of buy searches in over three years,” she said. Flaherty and other economists weren’t expecting the same sort of crazy price growth seen during the pandemic, but that was before the Albanese government announced it was bringing forward the five per cent deposit scheme aimed at first home owners to October this year. Income caps will be removed
and price caps increased as well. That is a massive game changer and something anyone looking at buying, who isn’t a first home owner, will want to take into consideration. The early start of that scheme will bring thousands more buyers into the market and economists and property experts are warning competition could get intense and “a little crazy,” as one broker said. The banks think it’s great, as they would, but there are quite a few skeptics. Economist Saul Eslake said that the problem he has with the scheme is that, “We now have more than 60 years of evidence that anything that allows Australians to spend more on housing than they ‘d otherwise be able to, be it first home owner grants, stamp duty concessions, generous tax concessions for property investors, shared equity schemes, easier lending criteria on the part of banks and other lenders, or in this case, allowing people to buy homes with smaller deposits and without having to pay lenders mortgage insurance, anything that allows Australians to spend more on housing than they otherwise would be able to, results in more expensive housing, which in turn, results in lower ownership
Open Homes Saturday, August 30
Schmith Estate Agents
• 27/1 Carramar Drive, Tweed Heads West, 10–10.30am • 3/10 Wilpark Crescent, Currumbin Waters, 10–10.30am • 3/10 Wilpark Crescent, Currumbin Waters, 2–2:30pm
DJ Stringer
• 2/48 Coolangatta Rd, Coolangatta, 9–9.30am • 24/182-184 Kennedy Dr, Tweed Heads West, 9–9.30am • 9/277 Golden Four Dr, Bilinga,10–10.30am • 1091/14-22 Stuart St, Tweed Heads, 10–10.30am • 2085/18-20 Stuart St, Tweed Heads, 10.30–11am • 501/85 Golden Four Dr, Bilinga, 11–11.30am • 2104/18-20 Stuart St, Tweed Heads, 11–11:30am • 2/15 Boyd St, Tweed Heads, 12–12.30pm • 803/106 Pacific Pde, Bilinga, 12–12.30pm
Things will be heating up for affordable housing this spring selling season, like this lovely home at 2 Rosella Close, Tweed Heads South, for sale with DJ Stringer
rates.” The government has said it will only push up housing prices by about 0.5 per cent over six years, although Eslake thinks it will be more. Housing is the biggest component of the cost of living and a major part of inflation. The more house prices go up, the more inflation goes up, the more interest rates go up, the more the price of housing goes up. Which all sounds a bit depressing if you aren’t a first home owner and are trying to get into the market, but until the scheme and prices start to rise, there will be a window of opportunity for other buyers, both owner occupiers and investors, to
get into the market. Principal at DJ Stringer Property Services David Stringer said the reduction in the deposit to 5 per cent, “will certainly assist first home owners to embark on their real estate journey much sooner.” “In addition, the First Home Buyer’s Guarantee also removes the significant cost of mortgage insurance which is usually between one and five per cent of the loan value, applicable to deposits of less than 20 per cent,” David said. “These are great initiatives that will assist tens of thousands of first home buyers around the nation. What will this do to the real estate market? “We have already experienced
a huge increase in demand from first home buyers prior to these announcements and this will only strengthen based on limited supply, resulting in an increase of property prices especially at the more affordable entry level,” David said. “We simply need more stock to bring the market into more of an equilibrium between buyers and sellers. “The question is how? Perhaps the federal government needs to assess or reduce capital gains tax for current investors who wish to dispose of their investment property – this would increase supply substantially.”
Blue Fox Property Group
• 5/14 Bolton St, Kirra, 1–1.30pm • 38 Amaroo Dr, Banora Point, 1–1.30pm • 10 Mourne Terrace, Banora Point, 2–2.30pm
• 18 Riverbend Way, Murwillumbah, 10–10.45am
Tate Brownlee Real Estate
JET Estate Agents
• 3 Osprey Place Brad, Kingscliff, 9–9.30am • 49 Bione Ave, Banora Point, 9–9.30am • 51/2 Barneys Point Road, Banora Point, 10–10.30am • 2/22 Beach Street, Kingscliff, 10–10.30am • 6/12 Parkland Place, Banora Point, 10–10.30am • 30 Sullivan Street, Tweed Heads South, 11–11.30am • 29 McPhail Avenue, Kingscliff, 11–11.30am • 25 Myeerimba Parade, Tweed Heads West, 11-11.30am • 4/28 Miles Street, Coolangatta, 12–12.30pm • 26 Glenbrae Drive, Terranora, 12–12.30pm • 5 Kakadu Court, Banora Point, 12–12.30pm • 20 Oakland Parade, Banora Point, 1–1.30pm • 9/4 Advocate Place, Banora Point, 1–1.30pm • 4 Kildare Drive, Banora Point, 1–1.30pm • 12/12 Solander Street, tweed Heads, 2–2.30pm
• 9 Tweed Valley Way, Condong, 9.30–10am • 11 Kurrajong Street, Mullumbimby, 9–9.30am • 166 Kunghur Creek Road, Kunghur, 10–10.30am • 7 Peter Street, Murwillumbah, 10.30–11am • 77B Balemo Drive, Ocean Shores, 10.30–11am • 16 George Street, Murwillumbah, 11.30–12pm
MANA
• 15 Muli Muli Avenue, Ocean Shores, 9–9.30am • 119 Commercial Road, Murwillumbah, 9.30–10am • 132 Middle Pocket Road, Middle Pocket, 10–10.30am • 16B Palmer Avenue, Ocean Shores, 10–10.30am • 402 Racecourse Road, Tygalgah, 11–12pm • 75 New Brighton Road, New Brighton, 11–11.30am • 26 Redgate Road, South Golden Beach, 12–12.30pm
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FROM THE JET REAL ESTATE TEAM