in WA the stamp duty for First Home Owners will be abolished from 1 July (to ‘x’ amount of value – $220k I think it is, then slides away up from there) and will be reduced for everyone else. This has effectively killed the market for the next 4 weeks whilst everyone sits back and waits for the stamp duty to come down. I foresee large gains in these cheaper properties once 1 July hits as everyone rushes out buying. In the meantime we have desperate vendors getting edgy. Is anyone considering a quick flip? In places like Thornlie you can still get a good house for $180k – who knows what that will be when all the first home owners and investors rush back to the market. If the strategy doesn’t work and you don’t make enbough to cover your in and out costs, you will have a good property returning decent yields that will be likely to benefit from good capital gains over the next year or two (forecast 15% by 2007). As yesterdays headline said – “Perth to defy housing slump”… concluding with “People investing in the market, whether it is an existing home or a new home, should enjoy a very good rate of return”. Dare I say it, this seems like a one way bet to me…. I just need some funding…..
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Very true…
We may be seeing the last of the 100 – 150k properties in perth in the next 6 – 12 months!
Luke [cap]
Yo, that’s why I’m out there buying as many WA properties as I can. I ain’t waiting for July 1 !
Hi all,
Before we get too excited it may be necessary to do some maths. Buying an $150K investment property after 1st July will only save $230.
Also bear in mind the depreciation ‘rules’ change after July 1 so any savings made will be offset with reduced depreciation claims.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Derek,
What changes are happening to depn. rules after 1 Jul ?and are they retrospective for property owned/rented prior to this date?
I beleive you were in P Hedland in a previous life… I’m up north currently and trying to complete a duplex dev. in Perth at the mo.
It would be great if the bricks turned up !!!
Between holding costs (delays in construction) and price rises it is killing me …Bottom line on the stamp duty fiasco is that this ratbag Labour Govt needs to be elected out at the next poll for treating the population like milking cows by jacking up stamp duties TWICE in their current term.
Cheers, KPHi KP,
There is an article in this month’s Money magazine that discusses some of the issues associated with the changes in ruling/interpretations.
The changes revolve around the reclassification of some plant and equipment into part of the building and some other alterations to the effective life of some plant and equipment items.
As I understand it the changes will only effect depreciation reports complete after July 1st 2004 and will not be retrospective (Depreciator/Scott) will clarify this if/when he reads this thread.
Understand what you are saying about bricks being in short supply and sympathise with you on that one.
Unfortunately too many voters will only remember the recent reduction in stamp duty and will forget the previous two rises. I guess we’ll find out what the people think in early 2005.
And yep – was in Goldsworthy in 89-91 period of time.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek
Post July figures for home buyer activity will be interesting i’d say, still a lot of cheap areas in WA.
See Mark Hay ( RE ) are heavily promoting Apartments reminiscent of over East..looking in the paper, there’s alot of Complex’s on the drawing board for Perth..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHI Redwing,
I tend to agree with Ausprop – the uninformed investor, who didn’t do their maths as per my earlier comment and who only read the ‘headlines’ will wait till July 1 as will FHO.
As such it is highly likely there will be another ‘run’ in sales, partially offset by the stay home in winter issues which often sees winter activity slow down.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I have heard that to avoid the big slump in June, they were going to introduce a pro-rata.
Can anyone confirm this? I can’t seem to track down any information regarding this, so am dismissing it as a rumour.
Hi Tikki,
As far as I know that was what the Real Estate Institute ‘wanted’ – don’t think it got up.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
You gunna spill the beans?[biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
HI Rob,
WHERE”S THE PROPERTY?[biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I think there’ll be a reasonable amount of FHO activity post financial year…
Stamp duty concessions on First Home purchases from July 1 2004
Price $220K
Saving $8230Price $250K
Saving $5167Price $275K
Saving $2902Price $300K
Saving $635Remember It’s taken as from when the Vendor ‘signs’ the Offer..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThink u might have got your calcs wrong Redwing.
Benson
Hi Benson..
Copied straight out of “The West Australian” Real Estate Section.. no calculations on my part, if it’s wrong…my apologies to all..what do you think is wrong ??
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing, Benson,
The differences in figures between Redwings and mine are because in Redwing’s instance he is quoting FHO who will get a significant stamp duty saving, whereas my figures were ‘savings’ made by other who are not eligible for FHO.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
Queens Park is one of those classic renewal suburbs and as such there are some ‘scummy’ houses in the area all located on large blocks of land just waiting for the developers to come through.
It (QP) has been the centre of activity for some years now and the pace is gathering rather than slacking off.
It has ready access to the city and is close to some larger shopping centres. Train line runs through the centre of it and this also provides relatively easy connections to all major urban centres within Perth metro area.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
G’Day Rob,
unlike the REI websites for other states, WA’s is very useful! If I get this right, try this link http://www.reiwa.com.au/content-suburb-30year-trends-detail.cfm?ID=35
just for a bit of extra info (useless or otherwise). I am frequently frustrated when trying to get the same info from other states REI websites and everything costs $$. I don’t mind that but if I want to browse to find something that might suit me, I’d have to buy all the info and it’s validity is very limited. WA rules, O.K.!C, act your age not your shoe size!
Cheers
C@34
Calvin..
Try quartile.com.au for other states.
I love the REIWA site too, ghreat to check up on Suburbs
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorBenson,
I don’t think Redwing has his calcs wrong at all – that information is taken straight from the Dept Treasury and Finance.
Remember those savings were for the FHO. For investors and other home owners, the savings is substantially smaller.
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