If labour get in , will Sydney have a mini boom ?

I agree.
They're merely benchmarks and goals which will be realigned once achieved.
I don't use number of properties as a goal anymore but rather a net worth at x years of age.

This is so that I don't fall into complacency because I have '7 properties by 30'

 

That is probably because that is the current political football.

It may also be because to the highest income earners that are said to be getting the most benefit, NG may be better for them.

For a person who will have one IP and keep it for 20+ years, the CG tax would probably be more important if they are going to be not using much in the way of NG, also most people wont have the NG benefit for that long.

 

If I have one, or eight IP's - and have no probs holding them, then I am going to think about selling only after I retire and my marginal tax rate is zero. Not much impact.

But; holding them and being out of pocket every week, and a hit to the lifestyle along the way...that is a more significant issue for a lot of folks who are contemplating/already doing it.

 

I understand some people will be like that too, personally, I do not buy things where I need to rely on NG anyway, I simply cannot do that.

We see a lot of people here working to have a minimum impact on outgoing as they are wanting to build and not awash in cash like some lucky people.

 

If labor gets in, wouldn't the last run on IP investments, and the holding of existing IP's mean more rentals on the market? I read that as a likely drop in rents between now and 2017.

 

It would possibly be a drop in rents; but given we have supposedly seen a massive spike in rentals (investor borrowing) over the last year or two in Melb and Syd - and we haven't seen much if any decrease in rentals generally - I'd say the rents probably won't drop.

 

I suppose it's what period you compare to, but to me Sydney rental prices seem very reasonable compared to purchasing costs.
From my observations, ten years ago a place worth a million would lease out for about $1000 a week, these days it would be more like $750- $800 a week. A lot of rental properties on the market too

 

Hey Jen D,

Assuming a lot of the NG is generated by the increase in strata buildings, do you think this means that there is a business opportunity in strata management?

And what would happen if there were an increase in Quantity Strata Management vs Quality Strata Management?

 

As I'm specifically looking at Manly , sqm , property listings for april in manly are 46 properties . A year ago it was 67 and the year before that it was 94 .

Vacancy rates are always higher in winter , but this years rate of 1.8 % looks about 30 % lower than this time last year .

Cliff

 

Bu that is probably because Sydneys run is over.

Out of interest, what are 1 and 2 bed units worth for something basic but clean ? they just got 674 for a 1 bed with no lock up garage at Cronulla & it is not on the ocean.

 

But if Sydney's run was over , you'd have increasing listings , but at the moment ( in Manly at least ) they're at historical lows , with properties selling quickly with lots of people at opens , so certainly in Manly it's not over .

For comparison , go to sqm's free research and plug in 2770 ( Mt Druitt ) and 2095 ( Manly ) and you get totally different pictures ( can't down load pics at work )

Mt Druitt bottomed out in late 2014 and has been trending since up while Manly is still trending down .

Cliff

 

Sounds like a lot of units tbh

 

Yep , there's a lot of units in Manly , but it's a very mature market with high demand . You'd need deep pockets to buy a house . Our unit is around 80 m2 with no garage and will sell for around 1 mill .

Cliff

 

Send some of that demand up north to Brisbane. I can assure you that in just as a desirable area in Brisbane you can get 10x the size - 800 sqm and probably cheaper than your unit as well.
That is the (unfortunate) difference between the two cities. One has overperformed whilst the other has underperformed.

 

The percent who don't own one.

 

The entitled bunch.

 

I wouldn't say Brisbane has underperformed, prices have risen, quite a bit as well, in the suburb of Manly over here. newish builds on 400sqm blocks going for over 1 mil as well over there.

 

anything less than sydney type numbers constitutes a gross underperformance in my view.

 

If Labour party won the election next round, I think there will be downturn or sideways in terms of property prices in Sydney.

 

Tekoz that depends on what Labor's immigration policy is (I have no idea - i should look it up). Sydney will keep bustling along if high-immigration policies ensue. Simply because, so many new migrants want to live in Sydney specifically.