Changes to Stamp Duty in NSW- June 2017

NSW Premier Gladys Berejiklian announces housing affordability fixes.

The NSW Government released a raft of measures to counter the difficulties first home buyers may be experiencing. In short, they encompass the following:

•First home buyers of existing/new properties up to $650,000 will be exempt from paying stamp duty
•They will also receive stamp duty discounts for properties worth up to $800,000 from July 1
•Stamp duty charged by banks on lenders’ mortgage insurance will be abolished. These are often required by banks lending to first homebuyers with limited deposits
•First home buyers will enjoy the removal of stamp duty for properties bought off the plan. This will assist with these buyers competing against investors, and
•In other areas, the stamp duty surcharge for foreign investors will be doubled to 8 per cent and on land tax from 0.75 per cent to 2 per cent.

Agents may recall, currently in NSW there is a stamp duty exemption on new homes valued up to $550,000 and vacant land valued up to $350,000.

There is also a stamp duty concession on new homes valued between $550,000 and $650,000, and vacant land valued between $350,000 and $450,000.

April 2017 Housing Market Update


According to CoreLogic’s April 2017 housing market update, capital gain conditions across the housing market has continued to grow with capital city home values rising by a further 1.4% in March to be 3.5% higher over the first quarter of the year and 12.9% over the past twelve months. The annual growth was the highest since May 2010.

 House prices have been surging higher since the middle of 2016 when the cash rate was lowered by fifty basis points and investment demand started to rebound after slowing through most of 2015 and the first half of 2016. In Sydney the annual rate of growth jumped to almost 19%. This was driven by broad factors including the strong jobs market, which is reflective of the buoyant services and construction sector, and the large number of investors that are adding to housing demand.

 Over the past twelve months, New South Wales and Victoria have accounted for just over two thirds of the nation’s population growth. 

 The long term average suggests the ‘normal’ share of population growth in these two states is about 51%.  Such strong population growth is a significant contributor to housing demand.

 The past five years has seen New South Wales and Victoria comprise three quarters of the national number of jobs created.

 The long term average is a substantially lower 55%.

 Finally, investment across New South Wales, and to a lesser extent, Victoria, is substantially higher than in other states.  Based on January data from the Australian Bureau of Statistics, investors were responsible for almost 60% of housing finance commitments, excluding refinanced loans, across New South Wales and 46% across Victoria.

 For a full wrap up on the market, view the NAB and CoreLogic’s April 2017 property video at

, ,

Ettalong Beach Rental Returns


Ettalong Beach rental returns.


According to the latest figures compiled by the Annual growth for Ettalong Beach was 13.3%. The median property price is $650,000, the median rent is $380.00pw, the rental yield is 3.0%.

Ettalong Beach is an exciting area to watch as many expect that property prices will appreciate with the changing character of the pretty seaside village.

The new Atlantis development on the Esplanade has reportedly been selling fast. The new development will enliven the area with new cafes and restaurants. It will also provide employment opportunities for many locals.

However, if you don’t have a cool $650,000 to buy another investment then some other areas are delivering results.  Investors looking for higher rental returns have headed to regional areas, that often do not enjoy the same capital gains as Sydney and the Central Coast.

Areas such as Broken Hill enjoyed a rental yield of 11.6% and a median house price of $108,000. Boggabri was another regional area that faired well with a rental yield of 8.9% and a median house price of $175,000.

If you are thinking of purchasing another investment property on the Peninsula, even if you buy through another agent, we can assist you with a rental appraisal and the management of your new investment.