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Land Tax
Land tax is calculated on the total site value of all of your properties.
Unlike other taxes, such as capital gains tax, income tax or GST, land tax raises a liability on an unrealised gain.
The tax is owed on paper, regardless of whether or not you receive any income.
This makes land tax a financial burden if it is not factored into your investments.
NOTE: you are exempt from land tax if your land is used for rural purposes.
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Should I Borrow the Entire Purchase Amount PLUS Costs?
If you are considering buying a property and are tempted to borrow the entire purchase price, as well as enough to cover all the other outgoings such as stamp duty and conveyancing, Marquette Turner will always advise you to err on the side of caution, as enticing the opportunity may seem to be.
As is always the case with property, make sure you are looking at your long-term goals, and never be unaware of economic factors, regardless of how “novice” you may rate yourself in such issues.
Think of a worst-case-scenario: don’t try to relate to your comfort zone now, relate to issues that may make your like somewhat more difficult.
Remember, the more equity you have in the property you are buying the more comfortable position you are in. This will allow you to weather booms and busts, and all investment cycles.
Listen to your head and think of the long-term. And of course, never be afraid to ask Marquette Turner for a little bit of guidance. Our team are always available to offer our assistance and thoughts (real estate or not!) but remember that it’s always better to ask the question than regret it down the track.
Simon Turner, Marquette Turner
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Auctions
The Best Way to Bid
Auctions are a nerve-racking experience for buyers, sellers and even agents! The concept of spending thousands or millions of dollars by raising your hand is somewhat surreal.
Make sure you do your homework. Our best advice is to attend other auctions to get a feel for what is happening in the area - and most importantly ask your Marquette Turner contact to attend auctions with you. We are always more than happy to help our valued clients.
Having a plan is critical. Make sure well before the beginning of the auction that you know at which point you will stop bidding. Knowing your limit and sticking to it is vital - deciding mid-way is a slippery slope to disaster. Make sure you are assertive, unhesitating and bold - this will certainly show your opposition that you mean business.
Remember that your enemy is the other bidders not the agent. Work with the agent before the auction and at the auction. He or she will be the person most able to advise and assist.
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Are Sydney Housing Prices on the Rise
The biggest question facing home buyers right now is whether or not home prices have started to rise again and is the rise going to be like that of 2000-2003?
Well, here's my thoughts:
The top end of the market is booming with multi-million dollar sales for Sydney Harbourfront homes continuing to set new records with Point Piper continuing to be the stand out piece of Sydney real estate.
Prices in Sydney's west are continuing to struggle with buyer demand lower than supply. The biggest problem facing vendors in Sydney's west is that many real estate agents are suggesting prices that are way too high in order to "buy a listing".
The term " buy a listing" refers to agents suggesting inflated prices for homes, dishonestly trying to create hope of achieving a higher price to win the listing by convincing the home owner that the impossible is actually achievable. Vendors really need to beware of this practice and should insist on evidence to support any suggestion of a price outcome.
I guess the best way of looking at housing prices at the moment is that suburbs of high demand around the harbour and beaches are pushing forward and looking stable and positive. Suburbs that have been traditionally less popular are proving tough going when it comes to sales, however, a sensible and well thought out sales strategy will result in a successful sale. Huge opportunities exist for cashed up buyers who can buy into suburbs like Lakemba which I believe is a Sydney real estate hot spot.
Be realistic with your pricing and sales strategies and choose the agent that proves his or her ability to attract buyers to your home and negotiate the highest price possible every time. Ask to see their qualifications and do not accept that they have been agents for many years as proof of their ability. The largest sales office, the largest sales team or the closest office all mean very little in the internet age and with around 80% of homes being purchased by buyers searching on the net your agent needs to prove that they will and can maximise your sales price.
Look at companies like Google to see that the oldest isn't necessarily the best. Always choose an agent who shows a real point of difference - at Marquette Turner you can expect a proven stragey every time.
Michael Marquette
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Why Property?
Australians have chosen property has their “route to wealth” for decades. It is not unusual to find people buying their own home to be their first ‘investment’. This can be followed by purchasing another property as investment, and perhaps even another. This is often before shares and other assets, despite the relative ease with which shares can no be transacted by the individual.
Property is, by no doubt, a great investment but your investment in property does in no way need to be your home. Indeed, buying a small apartment to rent out can be a good way to accumulate funds so that you can eventually buy your own place, in an area where you want to live. Or indeed, it may allow you to take advantage of investing in a booming area whilst choosing to rent in an area that is more desirable or convenient.
Sensible investments in property have many attractions. Property can generally be less volatile than shares and by and large tends to be regarded as a safe haven when other assets are declining in value.
Property has the potential to generate capital growth (an increase in the value of your asset) as well as ensure that you receive rental income. Then there’s the tax advantages associated with negative gearing and of course the benefits of positive gearing should never be under-estimated.
When buying property, having an understanding and keen awareness of the interest rate environment is vital. After all, interest rates affect the expected net return and the market for property should you ever decide to sell. You also should measure the return or ‘yield’ from property, and see how well is stands up against the return you may achieve should you invest in other assets.
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| First Home Owners Grant Factsheet (NSW) |
| First Home Owners Grant Application & Lodgement Form (NSW) |
| First Home Owners Grant Proof of Identity Form (NSW) |
| First Home Owners Grant Calculator (NSW) |
| Download Adobe Reader |
| First Home Owners Grant Application & Lodgement Form (VIC) |
| First Home Owners Grant General Information |
| Land Tax (VIC) |
| State Revenue Office of Victoria |
| Rent vs Buy indicator |
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