By Manish Azad
1. Record Low Interest Rates
Australia hasn’t seen this record low interest rates in history. The current cash rate is only 0.10%. So, if you ever wanted to get into the dream house or buy an investment property, this is the best time for you to not only buy but to also pay off your debt very quickly. The Reserve Bank of Australia has also confirmed that they don’t see any chances of lifting the interest rates for another three years so in most cases your mortgage repayments are going to be less than your rental income which means that your investment property could be positive cashflow.
2. Major Stamp duty Incentives by Victorian Government
Stamp duty concessions is the latest announcement from the Victorian government budget to cut down on the stamp duty for brand new houses by 50%, which is great news for people who are wanting to buy a new property. Also, for established properties, they’ve cut down the stamp duty by 25% so if you want to invest in property or get a new property for yourself, you should take advantage of this offer as it’s going to finish by June 2021. This makes it the perfect choice for saving anywhere between $10,000 to $20,000 just on stamp duty, which could boost your deposit.
3. Federal Government injecting billions of dollars into Major infrastructure projects
Heavy expenditure on infrastructure the federal and state governments are putting billions of dollars towards fast tracking projects that will create lots of jobs. The government is very clear and very aggressive on helping to get the Australian economy back on track after Covid-19. So, when the Australian government is spending so much money on infrastructure and boosting regional areas as well as the Metro areas, it definitely will spur activity in the property market and it will fast track the growth of the properties in 2021.
4. The 25k HomeBuilder Grant has been a real success
The HomeBuilder grant that was announced in July 2020 has had a massive impact in creating a lot of jobs that will continue in 2021. A lot of people have bought house and land packages all over Australia, which will be creating jobs throughout the year 2021 because all the contracts that have inside until December 2020 will get to work in 2021. It might take the whole year of 2021 and beyond so by doing that the government has been able to create a lot of jobs which will help revive the property market and also create jobs for the economy. The HomeBuilder Grant has now been extended to March 2021 with $15,000 available to home buyers. On top of that, the First Home Owner Grant and schemes on LMI have been introduced to cut down on the deposit by backing up the loans for first-time buyers. That has spurred up the demand for housing in Australia.
5. Aussies holidaying locally will spend money within Australia
Another good reason is a lot of people this year will not be able to go for overseas for holidays, so they are not going to spend all of the 20-30K they spend overseas. Australians love properties so it is very much likely that most of that money will be getting into the property market. This means there will be a lot of people who will be using their savings to good use and buying property. Of course, a lot of people will be holidaying within Australia which will boost jobs and the economy.
Mobile: 0433 213 993
Manish Azad has been helping a lot of property investors build their investment property portfolio and helped many people build their dream home. He has been involved in the property industry for the last five years and takes great pride in helping people get ahead in the property game.
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