Property Rebound Poised To Set Record Prices

The Sydney market rebounded very quickly over the last few months of last year and it doesn’t look like slowing down anytime soon and it’s likely we’ll see a number of new record prices if the latest data from CoreLogic is any indication of what’s ahead in 2020.

Yesterday, CoreLogic’s daily index showed Sydney values had jumped 0.7 per cent in the first 21 days of January, whilst Melbourne values gained 0.8 per cent, which were more than double the 0.3 per cent seen in Brisbane-Gold Coast, Adelaide’s 0.2 per cent and Perth’s 0.1 per cent during the same 3 week period.

According to Commonwealth Bank's latest household spending index, pent-up demand from house buyers suddenly back in the game after laying low during the downturn is pushing home-buying intentions to a record high and as outlined in the Australian Financial Review article…

"There's been a number of things to ignite price growth in markets that were otherwise falling," Domain Group's senior analyst Nicola Powell said. "That being three interest rate cuts, so credit's cheap, and the relaxing of mortgage serviceability measures so buyers can access greater debt."

Separate figures in the latest quarterly house price report from Domain.com.au show that the rebound has gained momentum in Sydney, which posted its first annual growth in two years. If prices continue at their current pace, the market will recoup the $165,000 lost during the 18-month downturn, with the median house price expected to break the $1.2 million barrier by the middle of this year.

So how far will it go this time?

It’s hard to say where this next phase of price growth will level out, but there are plenty of indicators that we should experience a rebound equating to double digit growth across many areas throughout Sydney, whilst…

HSBC economist Paul Bloxham said despite the strong rebound in the market late last year, he was still anticipating single digit growth nationally of between 5 and 7 per cent.

"We think we will see some cooling as more supply comes to market. We think the strong rise in house prices will attract people to put more houses on the market and the boost to supply will provide some cooling for the pace of growth of house prices in 2020. If you look at the supply and demand dynamics, there's still very strong population growth and there hasn't really been very much evidence of any oversupply," Mr Bloxham said.

However, if we look at the Sydney acreage market, there’s currently still some evidence of an oversupply which should change over the first half of this year as more and more buyers have already started to look at taking this opportunity to capitalise on an increased sale price for their residential home. The price growth in the housing market is now allowing a lot more homeowners to sell up and make their move onto acres, especially with the lower interest rates also making the move a lot more achievable.

There’s been a stark contrast between the level of buyer enquiry this year versus the start of 2019 as buyers with greater access to credit than they had in the past are now experiencing more competition as they look to get into the acreage market before it rebounds significantly.

If you’re looking to make the move onto an acreage lifestyle property, it looks like now is a great time to get in before the recovery of the acreage market goes into full swing.

If you’d like to know more about what’s happening in the acreage market, make sure you grab your FREE copy of The Acreage Report here

Regards

Greg Vincent

John McGrath Shares 8 Key Things To Know About The Market in 2020

Earlier today on Switzer Daily, property expert John McGrath shared an insight into what he anticipates happening to the property market in 2020 and I will be watching very closely to see how the 8 Keys Things To Know About The Market in 2020 will impact the acreage market over these coming months.

In his article featured on Switzer Daily, John McGrath shared…

“As we begin a new decade, we are entering a new moderate growth cycle in Australian property, led by Sydney, which is the strongest I have seen it in 30 years. 

Brand new listings are appearing on agency websites all over the country this week, as the Summer/Autumn selling season gets underway. 

Final figures for 2019 from CoreLogic show a national growth rate of 4% in the final quarter, which is the highest three-monthly growth rate since 2009.

I think this momentum will continue across most metro and regional markets given incredibly low interest rates, better access to finance and stable employment. These are the three big macro issues that should support the national market this year.  

Sydney and Melbourne are likely to lead this growth given they are well into recovery now.

I expect about 5-10%, which is a bit less than other predictions. The hope is we’ll see a return to normal levels of stock for sale this year, which should take a bit of the heat out.”

Here are the 8 key things to know about the market in 2020 

1. Low interest rates will propel the Australian market this year. As CoreLogic Research Head, Tim Lawless points out, it’s pretty extraordinary to see the three year fixed rate lower than rental yields and rates might go even lower still!

2. Low interest rates create a big disincentive to leave cash in the bank. I think more downsizers, retirees and investors will look to property for capital preservation, reliable growth and better returns than a term deposit over the next few years. 

3. Better access to finance will also spur on activity. We’re hearing stories of buyers who couldn’t get enough finance in 2017/18 now being offered sizeable loans to fund their property purchases since the banks loosened the rules. 

4. There’s $2.9 trillion sitting in super and SMSFs are continuing to find their way into property. It’s a safe and reliable option for preserving capital and achieving reliable returns from long term growth and decent ongoing yields. 

5. Starting this month, the First Home Loan Deposit Scheme will boost the lower end and give first home buyers another leg-up. The scheme allows young people on modest incomes to buy with a 5% deposit and a government guarantee on the rest. 

6. The weaker Australian dollar will bring offshore buyers and expats back to Australia this year, especially Sydney. We offer a significant discount compared to other stronger currencies and ongoing issues in Hong Kong are prompting Aussies to come home. 

7. The world took notice of Australia’s luxury market last year, particularly Sydney. First, we saw the Opera Residences sale at $27 million or $96,000 per sqm. Then we had the Barangaroo penthouses sale at $140 million or $100,000 per sqm.  People who want a business base in Asia consider Australia very attractive.  Big sales like these give others confidence to invest major capital into our property market.

8. Barring an extraordinary economic event, I think the Australian economy is in good health. Employment is the greatest factor in market stability and right now, unemployment remains low and jobs growth is solid. Whatever your plans for 2020, I wish you the best of luck in the property market this year.

To read the full article from John McGrath, Click Here

if you’d like to get an insight into what’s happening in the acreage market make sure to grab your FREE copy of The Acreage Report 2020 (Summer edition) at www.TheAcreageReport.com.au and also receive a FREE copy of The McGrath Report 2020.

Acreage Market Wrap - 18th Jan 2019

Hi, my name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?

Firstly, how good is this rain? It’s been great for our lawns and gardens but it’s such a welcome change for the farmers and their crops, providing water and extra feed for their stock, filling the rainwater tanks & dams across the district and much needed relief for the firefighters and a boost for the bush and our wildlife.

One of my mates up on his farm in Queensland woke up this morning with 67mm in the rain gauge & water in the dams. In 1 day they’ve had a quarter of the rain that fell in all of 2019. The rain is being welcomed everywhere across the country.

OK. So ‘How is The Acreage Market?’ ...Well, there are currently 373 acreage properties for sale across the region, with 205 in The Hawkesbury, 117 For Sale in The Hills and 49 in the North Western acreage areas of Blacktown & Penrith.

So far this month there have been 5 acreage properties sold with another 14 currently Under Offer throughout the region with a lot more new acreage listings expected to come onto the market later this month, along with a lot more sales activity anticipated.

With only 5 sales recorded so far in January, this is very typical for this time of year as many Solicitors have only just come back from their Christmas Holidays for the sales contracts to go through.

In fact, the market is a lot more active than these figures suggest. For example, we held the first Open Homes for 2 properties today one at 7 Everett Place, Annangrove and the other one at 197 Willeroo Drive, Windsor Downs and with a total of 17 groups through I’m currently in negotiations with buyers for both of these properties.

Competition is definitely coming back into the acreage market, however, after the recent bushfires I’ve sensed that some buyers have become a bit nervous about making a tree change, but, this hesitation should lessen over the coming weeks and months.

Speaking of the bushfires, now that the recovery efforts are swinging into action it’s been incredible to see so many incredible initiatives currently urging people to support the fire-affected regions, with help coming from all corners of the globe.

Bilpin was one of the worst affected areas for us locally and the locals are now urging people to come back by promoting that Bilpin is Open for Business and as a new initiative to get people to come and visit the area a #BackToBilpin hashtag was set up and has been widely promoted across Social Media sites & within 24 hours people came out in large numbers to help this community get back on their feet.

Also, a group from Hawkesbury Equestrian have driven a horse float filled with horse riding gear down to the South Coast to help people down there get back in the saddle. Plus, there’s so much other relief happening like Mattress for a Mate, Wildlife drinking towers being donated to Friends of Hawkesbury Wildlife and in an unprecedented show of unity, the real estate industry has united together with the ‘Beyond The Bricks’ initiative and already over $600,000 has been raised.

In other real estate news, Domain.com.au reported this week that the Sydney Metro Has Dramatic Increase To Buyer Activity And Property Values with the online property searches for suburbs along the Metro Northwest increasing by as much as 37 per cent compared to a 4 per cent increase across the other Sydney suburbs. Rouse Hill has experienced the largest increase of 37.8 per cent which should have a positive flow-on effect into the nearby acreage market.

Also, this week I’ve sent out nearly 100 copies of the Summer edition of The Acreage Report 2020 if you haven't grabbed a copy of it already, make sure you get in touch with me or visit www.TheAcreageReport.com.au or my blog to get your copy now. It's packed full of great insights into exactly what's happening in the acreage market in The Hills, Hawkesbury and Sydney's North West.

So there you have it. That’s this week’s Acreage Market Wrap.

If you have any questions about anything I’ve mentioned in this video or would like to discuss any of your acreage plans with me, don’t hesitate to get in touch.

Have a great week everyone. Bye for now.

Regards

Greg Vincent

Australia's Real Estate Industry Unites In Support Of Our Bushfire Affected Communities.

I’m proud to say that the Australian Real Estate Industry has come together in an unprecedented way to help support those communities affected by the recent bushfires which occurred throughout Australia.

Several industry thought leaders have joined together and the fundraising site BeyondTheBricks.com.au was recently launched with several real estate networks involved, including McGrath.

The support is being provided in numerous ways…

Funds raised will be going to The Australian Red Cross, the Salvation Army, St Vincent De Paul and WWF (World Wildlife Fund) in a particular order as outlined below (Source: BeyondTheBricks.com.au)

WHY THESE CHARITIES

“As real estate agents, we work with people and are part of their local community. We want to support our communities through the three phases we ‘ve highlighted below. 

The Australian Red Cross and the Salvation Army are first responders. They’re the ones on the grounds, manning evacuation grounds, feeding people and making sure their basic needs are fulfilled.

St Vincent de Paul is mainly staffed by volunteers who live and work in every local community - they have 630+ physical locations around Australia. Not only supporting first responders they work with local communities through the rebuild and store phases, making sure those in need get what they need - whether it be financial support or the replacement of household goods. 

WWF are our fourth charity whose focus is on rescuing wildlife during the crisis but also on reforestation and restoring habitats/climate change.”

Source: BeyondTheBricks.com.au

Source: BeyondTheBricks.com.au

There are several ways that the industry are also looking to get the broader community involved:-

1. Offer Your Home To A Displaced Family

2. Attend A Local Fundraising Event

3. Make A Generous Donation

This afternoon the BeyondTheBricks.com.au website had just ticked over $600,000 raised so far.

To keep-up-to-date with the industry campaign and see how McGrath are involved, click here

Congratulations to all involved. This should provide a fantastic collaboration of much needed support.

Hopefully as an industry we can do a lot to help these communities get back on their feet faster.

Again, well done.

Regards

Greg Vincent

Equestrian Community Helping To Get Bushfire Victims Back in the Saddle

The equestrian community has rallied together very quickly to help come to the aid of the South Coast Bushfire Victims who’ve lost a lot of their horse riding gear in the recent fires.

A new initiative called the South Coast Horse Gear Donation Drive was launched yesterday on Facebook which only came about via a simple request for help posted to friends.

“This all started with Ash doing a post to her friends asking for anyone to help out her nieces down the South Coast that lost all their horse gear in the Xmas/NY fires. Well it didn't stop at gear for them, it went crazy and we had donations from the amazing equine communities all over Sydney, Central Coast and Hunter Valley. So two girls can only have so much gear so we reached out to all the horse lovers affected by the fires in Southern NSW. This brings us here now, we have so much gear we need YOU to speak up and ask for help - because we are here to help and get you back into the saddle.”

SOURCE: South Coast Horse Gear Donation Drive

If you have any equestrian gear you would like to donate, contact the South Coast horse gear donation drive or get in touch with your local equestrian community as many have already started up a collection drive.

For example, Councillor Emma-Jane Garrow shared this post earlier today showing this outstanding group of dedicated people from The Hawkesbury who have packed the ute and horse float full of donated equestrian gear and are delivering it to the South Coast fire victims tomorrow.

The photos above from their Facebook Page show some of the equestrian gear that has been donated already.

There are so many different ways that the bushfire victims have been impacted and relief efforts like this will be greatly appreciated by the South Coast community.

If you have any equestrian gear you would like to donate, I’m sure there’s still a lot more gear that will be required to help the bushfire victims get back in the saddle.

Congratulations to all involved and well done to all those horse lovers who have already donated towards such an ‘Outstanding show of support’.

I’m sure I speak on behalf of many fellow Aussies when I say that we are all extremely proud of what you’ve done to help those Australians who are in need at this time.

Congrats again. Brilliant effort!

Warm regards

Greg Vincent

#BackToBilpin - A Positive Local Community Initiative For Bushfire Relief

It’s been heartwarming to see how the local communities have rallied together already in these early weeks of the bushfire relief.

SOURCE: FACEBOOK.COM/BACKTOBILPIN

On Saturday 11th January this new initiative was launched via the newly created Back To Bilpin Facebook Page to help…

‘SPREAD THE WORD - BILPIN IS OPEN!

Bilpin, the Land of the Mountain Apple, suffered from raging bushfires up and down the Bells Line of Road over the peak Christmas period.

Bilpin is a boutique tourism hot spot well known for its B&Bs, apple orchards, fruit picking, organic produce, ciders and open gardens. Just 90 minutes from Sydney, it is a great day trip or weekend away.

Like many regions throughout Australia, the unforgiving Christmas fires hit right in the peak of the tourism season.

Local small businesses now need our help.

Hawkesbury City Councillor Sarah Richards along with Lionel Buckett from Wollemi Wilderness Cabins, Michael Sperling from Bilpin Country Lodge, Bilpin and head of Blue Mountains Accommodation and Tourism Association, and residents Michael and Jane Hughes came together to workshop ideas to let tourists know it was safe to return.

#BACKTOBILPIN was born!

We are asking you to LIKE AND SHARE this page so we can get the word out to locals, Sydneysiders and tourists to come for a drive to Bilpin and visit our small businesses.

#BACKTOBILPIN NEEDS YOUR HELP.

Over the coming days and weeks, we will regularly feature local businesses and provide links to their pages.

Together, we hope this small grassroots campaign can revitalise the Bilpin economy.

Visit www.visitbilpin.com, www.visitbluemountains.com.au and www.discoverthehawkesbury.com.au to plan your day.’

It was great to see such a huge show of support just 24 hours after the #BackToBilpin Facebook page initiative was launched.

For example, the very next day, Robyn Preston MP, Member for Hawkesbury shared this post about how people were lining up to buy apple pies and refreshments to support the local businesses in Bilpin.

Bilpin is a beautiful part of The Hawkesbury and their retail trade (especially on the weekends) is such an important part of the fabric of the community.

Now that BILPIN IS OPEN, this community will require and appreciate any support to help them get through the coming year or more of re-building that’s required throughout Bilpin and its surrounding areas.

Also, some good news, the Blue Mountains Botanic Gardens in Mount Tomah has re-opened and they shared this update on their website

The Blue Mountains Botanic Garden Mount Tomah is now beginning to re-open to visitors, following the recent bush fires.

We at the Garden are extremely grateful to our staff, local community and emergency services personnel who dedicated their time and expertise in dealing with the devastating bush fires. 

Fortunately, most of the Garden’s plant collection, buildings including The Potager restaurant, accommodation, and venue spaces were unaffected by the recent fire.

Some areas within the Garden remain closed for safety reasons. For further details please view this map and observe signage within the Garden.   

For updates relating to The Blue Mountains Botanic Garden please follow us on Twitter and Facebook. If you need to contact us, please use our temporary phone number 0492 442 245.

The Botanic Gardens also mentioned that, “The Blue Mountains community along Bells Line of Road has been significantly impacted by the fires. As you travel through the area, please consider visiting local businesses to support their recovery.”

When you head up to Bilpin takes some photos and share them on social media. Don't forget to use the hashtag #BACKTOBILPIN

Congratulations and a HUGE THANK YOU to everyone involved in launching this wonderful initiative for the Bilpin community.

Well done.

Regards

Greg Vincent

Sydney Metro Has Dramatic Increase To Buyer Activity And Property Values

Almost a year ago now, John McGrath featured in an article by Katrina Creer in the Rouse Hill Times where he predicted,

‘for those living in The Hills, incoming major infrastructure would add to market confidence. The $8.3 billion Sydney Metro North West, stretching from Tallawong station at Rouse Hill to Chatswood station, is set to open shortly while the North Connex could be completed by the end of the year.

I think current infrastructure has been partly factored into the growth of the area, however, upon completion when the vision becomes a reality and people can experience the benefits, it will have a further positive impact.’ - John McGrath - Rouse Hill Times 19/2/19

SOURCE: SYDNEYMETRO.INFO

John was 100% correct about the impact the Sydney Metro would have on property and the latest data trends from Domain.com.au have shown that there has also been a dramatic increase in online buyer activity for suburbs situated near the Sydney Metro.

Kate Burke from Domain.com.au reported, "‘Sydney home hunters are turning their gaze to suburbs along the new $7.3 billion metro line, with new data showing spikes in buyer interest in recent months.

The number of online property searches for suburbs along the Metro Northwest increased by as much as 37 per cent after the project opened in May, Domain data shows, with agents also reporting a jump in demand.

There are 13 stations linking Chatswood to Rouse Hill. Suburbs with metro stops had a combined 15 per cent spike in interest following the metro launch, for the period from June to December, when compared with the previous seven months. By comparison, searches across Sydney’s suburbs more broadly increased only 4 per cent over the same time period.’

There’s been nearly 4 times the interest (15%) from buyers searching for property near the Sydney Metro versus only 4% in other areas, yet Rouse Hill has experienced a massive spike of nearly 10 times the Sydney Metro average.

‘Rouse Hill, which has two stations, had the biggest uplift, with searches to buy in the suburb up 37.8 per cent. Cherrybrook, Macquarie Park and North Ryde were next with searches for each increasing more than 25 per cent.’

SOURCE: DOMAIN.COM.AU

This is also excellent news for acreage owners with strong price growth anticipated for properties located in suburbs situated in close proximity to either the Rouse Hill Station or Tallawong Station as today’s more modern acreage buyers seek a more peaceful, spacious rural life, they also yearn for convenience and an easy commute.

Working from the McGrath Rouse Hill office, our team have experienced the dramatic increase first hand and as the acreage specialist it’s been great to be able to be right in the thick of what’s happening so that I can have a greater insight into what’s ahead for the acreage market in the months ahead.

If you’d like to know what the forecast is for your acreage property or for your acreage suburb, don’t hesitate to get in contact with me.

Regards

Greg Vincent

Acreage Market Wrap 11th Jan 2020 - Find Out ‘How’s The Acreage Market?’

Happy New Year everyone. My name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?

Today I’m coming to you from the Windsor Downs Nature Reserve. It’s a beautiful part of The Hawkesbury with lots of walking trails and it’s a great place to escape away from the hustle & bustle of city life and enjoy the natural surroundings of the Australian bush.

I’m filming in here today for a couple of reasons...

Firstly, and most importantly I wanted to pay respect to all of the fire fighters and all of those families impacted by the recent bushfires which are still burning across several fire-fronts throughout Australia.

The devastating loss of lives, homes, communities and livelihoods as well as the enormous loss of wildlife and bushland is unimaginable.

What the firefighters have had to endure is inconceivable and we simply can’t thank them enough for all that they and their support crews have done for all of those communities affected throughout Australia.

It’s been so heartwarming to see both local and global support and donations flooding in during this time.

To do our bit to help, our McGrath community are rallying together as a network and during the month of January and February $200 out of each sale is being donated to the Red Cross bushfire appeal and we estimate that we should raise approximately $200,000 collectively as a group. I’m extremely proud to be a part of this initiative from our McGrath team.

It’s wonderful to see the good side of humanity as well as the amazing Aussie Spirit shining so brightly during these difficult times.

Now the second reason why I’m out here in the bush today is because it’s not only a beautiful spot, but also, it’s nice and shady. You see over the Christmas holidays I took the opportunity during the break to do a skin cancer treatment which as you may or may not be able to notice has left my skin quite red, blotchy and sensitive to the sun.

It will all clear up over the next week or two, and it’s a far better option than the alternative which could’ve meant getting the skin cancers cut out ...and so I thought this weeks Acreage Market Wrap is a good opportunity for me to raise some awareness about skin cancer and encourage everyone to be sun safe this Summer. So please make sure you slip, slop, slap.

So, ‘How is The Acreage Market?’…

Last month in December there were a total of 36 acreage sales across the region, with 18 sold in The Hawkesbury, 14 in The Hills and only 4 sold in the North Western acreage areas of Blacktown & Penrith.

At present there’s currently 382 acreage properties For Sale across the entire region with a lot more new acreage listings expected to come onto the market later this month.

A lot of acreage owners have been waiting until after Christmas to put their property up for sale and whilst there will be more listings, we should also see a lot more acreage sales happening in these coming weeks and months ahead as owners look to capitalise on a much more positive & active acreage market than it was this time last year.

Over the Christmas holiday period enquiries for acreage properties increased dramatically compared to the same time last year ...and during this past week there’s been a lot more buyer enquiries coming through.

I've also noticed that there's been a definite increase to the number of out-of-area, aspirational buyers looking to relocate to a more spacious and peaceful acreage lifestyle.

So, if you’re thinking of selling, ...now could be the right time to make your move , and who knows perhaps one of these buyers that I’m currently working with may just happen to be the right buyer for you.

For example, last month I sold a beautiful property at 35 Fitzroy Lane, Windsor Downs which sold before it even hit the market.

I achieved an excellent price for the owners who were thrilled with the outcome and they were really happy with the fact that we were able to sell it without having to advertise the property at all.

So, what else is new?

Well coming up this week, I will be launching an amazing property on 5 acres situated in a quiet location in Annangrove.

I think there’ll be some very strong interest for this one because it’s a modern, single-storey 5 bedroom homestead built by Rosewood homes.

The home features an extra-spacious open plan living area, 9 foot ceilings & ducted air throughout, enormous kitchen and a large theatre room.

There’s also a massive shed with 3 phase power, mezzanine storage, an awning down the size of the shed and a wide gravel driveway. It’s a brilliant set up for trucks, a tradie, car enthusiast or simply for storing away those big boys toys.

It’s a great property for the whole family. Photos were taken yesterday and it will be live on the internet early next week with the first Open Home being held next Saturday the 18th of January, ...unless it sells beforehand.

In other news, the First Home Loan Deposit Scheme kicked-off on the 1st of January.

Apparently hundreds of buyers have already applied for this initiative from the Federal Government. It’s only available for the first 10,000 applicants who qualify.

The scheme saves First Home Buyers approximately 20-30,000 dollars and it will help thousands of buyers to enter the property market who otherwise couldn’t afford to buy, which will have the domino effect of increasing property prices at the bottom end of the market and will help to fuel further price growth and buyer activity within the acreage sector.

For more information about this scheme check out this article

Also, in December the Federal Government had their controversial Capital Gains Tax legislation passed through the Senate which will have an enormous impact on thousands of Expats living abroad who currently own property here in Australia.

The Expats currently only have up until the end of June to sell their property if they want to avoid being slugged with a huge Capital Gains Tax bill in the future. If you want more information about this I wrote an article about this new legislation yesterday. Here is the link to the article

Also, while you're there, if you haven't grabbed a copy of it already, make sure you get your copy of the Summer edition of The Acreage Report 2020. It's packed full of great insights into exactly what's happening in the acreage market in The Hills, Hawkesbury and Sydney's North West. Grab your FREE copy here

So there you have it. That’s this week’s Acreage Market Wrap.

If you have any questions about anything I’ve mentioned in this video or would like to discuss any of your acreage plans with me, don’t hesitate to get in touch.

Have a great week everyone.

Regards

Greg Vincent

New Capital Gains Tax Legislation Set To Severely Impact Expats

A lot of expats will be cashing in their Australian investment properties to avoid the Federal Government's controversial new Capital Gains Tax legislation which passed through the Senate in December.

During the 17-18 Federal budget changes were made to capital gain tax exemptions for Australian property owners living overseas. Expats now have until the end of June this year to sell their homes if they want to avoid big capital gains tax bills reports Nassim Khadem from the ABC

For decades, Australians living abroad have been able to claim the capital gains tax (CGT) exemption on the family home.

This exemption was available so long as the home was rented out for no more than six years at a time.

But in early December the Federal Government finally passed through the Senate its $581 million plan to change CGT arrangements for people living overseas.

The law basically eliminates the CGT exemption for Australian expatriates that has been in place since September 20, 1985.

It means that potentially thousands of Australians will be hit with capital gains tax if they sold their property while a resident overseas, and the tax bill will date back from the time the owner purchased their home, not the point at which they moved overseas

Key points:

• The Federal Government saw the controversial law pass through the Senate in early December

• The change means thousands of Australian expats could be up for hefty capital gains tax bills

• Tax experts argue the measure is draconian and may force expats to return to Australia and sell their homes before June 30

Expats who want to sell ahead of the June deadline should consider putting their property on the market earlier in the year to allow for time to give the required notice to the tenants regarding the intention to sell the property and coordinate access for professional photography, inspections, etc as well as allowing reasonable time to sell the property.

Otherwise, if left until closer to the end of June it’s likely that there will be a flood of expats trying to cash-out of their investment properties in Australia prior to the deadline.

Be careful, I anticipate that during May and June there will be a lot of astute investors ready and waiting to pounce hoping to capitalise on any opportunity to target those expats who have left it to the last minute who will be more desperate to sell ahead of the time sensitive deadline.

For more detailed information about the impacts of this legislation make sure you read this article from Nassim Khadem

If you have any questions regarding this new legislation or if you’re wondering what is the best way forward feel most welcome to contact me.

I hope you find this information helpful.

Regards

Greg Vincent 

The Acreage Report 2020 (Summer edition) + The McGrath Report 2020

For the latest update about what’s happening in the Acreage Market, make sure to grab your FREE copy of the latest copy of The Acreage Report (Summer edition) and at the same time also gain exclusive FREE access to a copy of The McGrath Report 2020

In this latest Acreage Report, the statistics are quite compelling across the different council regions showing an acreage sales volume increase of 159%, 166%, 259% and 116% compared to the same period last year.

The acreage market has bounced back due to a number of major factors which have had an impact on acreage prices along with a number of important changes made by the government which have been outlined within The Acreage Report (Summer edition).

If you’re trying to decide whether or not to buy, sell or hold onto an acreage property then you’ll find lots of helpful information and market insights within this report. Grab your FREE copy here

For example, this is just some of what you’ll discover…

Many acreage property owners are tending to look at the acreage market within a series of pockets, whereas, acreage buyers are taking a much broader view. In this current market it’s more important than ever to keep a finger on the pulse and maintain more of an overall ‘helicopter-view’ when interpreting the state of the acreage market. 

I guarantee that this detailed Acreage Report will help you appreciate exactly what’s happening within The Hawkesbury, The Hills & the North West Sydney acreage market and provide you with a greater understanding of the changes currently occurring in the acreage sector.

Make sure to get your copy today, here at www.TheAcreageReport.com.au and you’ll also receive your FREE copy of The McGrath Report 2020 featuring real estate market insights from John McGrath.

I hope you find the information in The Acreage Report helpful.

Regards

Greg Vincent

ONE MAJOR THING The Property Websites Have Got Wrong

I had a buyer contact me about an acreage property and they said… “Going on past history we assumed the property would be a lot less than the current asking price.”

I totally understand why they feel that way, because buyers have so much access to information nowadays that it actually becomes confusing and creates indecision or even a level of “paralysis through overanalysis.”

What somebody paid for a property several years ago means absolutely nothing. Just because someone bought a property cheap doesn’t mean they’re going to sell it cheap. Property owners want ‘fair market value’.

Historical data has zero bearing on a property’s value and I honestly don’t know why the property websites show them so prominently.

They only serve to create a false perception of value, just like the price estimates do.

You see, historical data doesn’t take into consideration any of these factors…

1. the circumstances of the previous sale at the time

2. the condition of the property or the nature/extent of improvements made

3. the demand in the current market

4. the changing income opportunities that have taken place with sites like AirBnB becoming used so prevalently nowadays

5. the owners current circumstances

6. the skill level of the agent handling the sale (both now and back then)

In this information age I appreciate that transparency is important and helps to build trust, however, I also know that when buyers are making such an emotional decision as buying a home they want logical information to reinforce their decision so that they don’t feel that they have paid too much for a property.

I do get it. The whole buying process can be a massive balancing act.

But, over the past few years, I’ve met lots of buyers who missed out on their ideal home simply because they overanalysed the market and thought that the owners were unrealistic or the home would never sell for the price that it actually ended up being sold for.

These buyers ended up being incorrect, frustrated and extremely disappointed, but, then they all used the same standard phrase to either justify their decision or save face… “Oh well, obviously it wasn’t meant to be.”

Whenever I hear that phrase I sigh and feel sorry for them because they wouldn’t have made an offer if they didn’t want to buy the home in the first place and think… ‘if only they knew what they’ve actually missed out on”.

Anyway, this article is for all of those people who may be deciding on a home at the moment and don’t want to miss out on a property simply because they were overanalysing the market.

You see, personally I think the property websites have gone way too far with how they serve up historical sales data and they have put way too much emphasis on making that information so prevalent on their websites (especially when you consider who actually pays to have the properties appear on their websites)..

Just remember whatever an owner has paid for their home previously has no bearing whatsoever on the property’s current market value.

I hope you’ve found this information helpful.

Regards

Greg Vincent

McGrath Announces Support for Australian Fire Emergency

Source: National Geographic

Yesterday, Geoff Lucas CEO of McGrath Ltd announced a new initiative designed to help support people affected by the devastating bushfires in Australia.

“I write to you today as we continue to witness the catastrophic fire situation that is engulfing regional areas of NSW and Victoria.  And sadly the worst appears yet to come, following years of drought experienced by our regional communities.   More than 2,000 homes have been destroyed and over 500 million of our animals have perished. The human cost is rapidly escalating.  As we watch another State of Emergency declared for NSW and the State of Disaster declared for Victoria, it’s heartbreaking to witness the destruction these fires are causing in areas so familiar to us. 

It is time again, as we do so well, for the McGrath community to band together and support others as they face hardship, sadness and immeasurable loss. 

McGrath is today commencing a program to support those tragically affected.  As of today, we are encouraging each agent to donate $100 per sale during January and February 2020. This will be optional and as a company we will match each $100 donation.  The donations will be made to the Australian Red Cross disaster relief donation drive. Together with your help we estimate this will amount to a sum of over $200,000.”  

I confirmed with Geoff Lucas this morning that “I am very happy to be a part of McGrath’s fundraising for Australia’s Fire Emergency”

It’s really heartwarming to hear how so many people and corporations from around the globe are rallying together to support the Australian Bushfires catastrophe.

I’m proud to be part of this McGrath initiative and I’m even prouder of how the McGrath community rallies together during times of need.

As an example, last Friday the 3rd of January, Andrea Tucker, Principal of McGrath Estate Agents Mollymook & Ulladulla made the following announcement via their Facebook Page.

This is such a difficult time for so many Australians and my heart goes out to everyone affected, especially those who have lost loved ones or lost their homes/livelihood as a result of these horrific fires.

I can’t thank the RFS and all of their dedicated support crews enough for their tireless dedication and for all that they have done to assist communities throughout Australia during this extremely hot & busy fire season.

THANK YOU RFS

Regards

Greg Vincent