NSW property investors’ condundrum: take the $22,490 housing bonus now or just $5,000 after July 1
NSW investors have a deadline, which includes an interesting long-term punt on the price direction of property over the next year or two.
For the next 18 days they have a zero stamp duty option – and the potential saving of $22,490 through the NSW home builders' bonus.
It’s available if investor buyers put a deposit down for an off-the-plan purchase or new house costing less than $600,000.
But from July 1, 2012, the best deal for government grants will be a fixed $5,000 offering in a new scheme for investors of new homes, whether off the plan or newly built.
It's for purchases up to $650,000 and also applies to buyers of vacant land up to $450,000.
Real Estate Institute of New South Wales president Christian Payne says the lack of incentives for investors after July 1, 2012 “will only translate into more bad news down the track for those struggling to find accommodation in the state’s already tight rental market".
“Investors after July 1st will be on average $17,490 worse off on a $600,000 purchase off the plan than if they bought the same property today,” he says.
Over the next 18 days Property Observer will publish forecasts by experts as to the merits of buying now, or delaying one's purchase.
The Mark at Sydney's Central Park
Now, all signs point south for this market. A year ago vacancies were near zero but today they’re approaching 5%. Price growth has stopped and, according to Australian Property Monitors’ price graph, has started to dip below the red line.
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