Draining the pockets of homebuyers to the tune of over $20 billion each year, stamp duty is a major player in what the media deem – “The Affordability Crisis”.
According to Australia’s HIA Watch, Sydney and Melbourne stamp duty has increased almost three times faster than house prices since the 1980s.
In Melbourne – Victoria, the typical stamp duty bill increased from 1.9% to 5.2% of the median house price between 1982 and 2017.
Sydney – NSW, the stamp duty grab rose from 1.6% to 3.8% of the median house price over the same period.
State governments total stamp duty revenues almost doubled over the past four years from $11.7 billion in 2011-12 to $20.6 billion in 2015-17. Removal of stamp duty would go a long way towards improving housing affordability in both Sydney and Melbourne but at the tune of $20 billion each year
how many of us see that happening…?
Stamp duty increase and overseas investors seeing value elsewhere, are the telling factors that led to the Sydney and Melbourne real estate markets ending 2017 with a whimper, with experts predicting pricing to continue to head south.
All well and good……all part of the cycle……but what does this mean for you as an investor?
When rates go up – (and they will, the pinch is coming) – Who will feel it and who will sleep easy?
Investors in the Sydney market with a median house price of $1.2 million – and average yield of 2.9%?
Investors in the Melbourne market with a median house price of $900,000 – and average yield of 2.8%?
Investors in the Brisbane market with a median house price of $500,000 – and average yield of 5%?
As you know one of the most important factors to look for when investing is infrastructure spending and three Queensland regions have that in droves – Moreton Bay suburbs such as Caboolture, Morayfield and Burpengary, have great potential for investors in 2018. These three suburbs rated second in Australia for family liveability and affordable housing showing a median house price of $485,000.
The Moreton Bay region, which covers the Brisbane metropolitan area urban sprawl in the northern growth corridor, offers affordable housing as well as good rail and road links to Brisbane to the south. Throw in all the fun the Sunshine Coast has to offer to the north and you have all the investment boxes ticked, with a new university and a new town plan, the Caboolture-Morayfield Burpengary area is destined to continue absorbing urban growth.
There’s no doubt Brisbane house prices are “Crazy Cheap” …….
Cost of living in Queensland is “Crazy Cheap” …..
Queensland Stamp Duty and Entry fees are “Crazy Cheap” …..
Throw in the weather, the beaches, the lifestyle and do the maths on where you feel investors will be flocking to over the next few years.
The only question left is….How will you profit from this…?