Breaking through the 2017 NSW Budget clutter

So what’s all this hype about interest rates, foreign buyers, federal budgets and how did smashed avocado get caught up in the property market?

We’re in the month of July, and for most of us we’re sitting here scratching our heads wondering how the first half of the year has whirled past us so quickly. You could also be wondering how the residential property market has become so confusing.

We’re here to break it down and provide guidance around a buildup of information, reports, data, articles and a heap of media exposure.

Median house prices have more than doubled in Australian capital cities from $286,000 to $700,000 over the past 10 years, with units and apartments growing by 40% over the same period. This is a normal part of our economy’s cycle as wages have also grown by 3% in the same amount of time. But what’s to blame for the surge in property prices over recent months?

We’ve heard it all; foreign buyers, over population, investors, low interest rates and high transaction costs, the list goes on. Let’s recap on the most recent findings.

  • Traditional, baby boomers and Gen X think foreign buyers are attributing to rising prices.
  • Gen Y agreed it is mostly foreign investors, but also considered over population as a contender.
  • Low interest rates means repayments become more affordable, therefore pushing property prices up.
  • 63% of 600 people surveyed with wages ranging from $70k to $250k ‘mass affluent’ individuals have said they will be expecting to taking out a home loan in the next two years.


So what does this mean for Sydney’s apartment market?

Thanks to our Federal Treasurer, 2017’s budget has relieved the tension by providing changes for first home buyers, property investors and older Australian’s looking to downsize.

The NSW government has introduced a new packaged tailored to first home buyers that will see stamp duty costs removed from new and existing properties under $650,000 as well as stamp duty discounts for properties up to $800,000. The 9% stamp duty cost for lenders mortgage insurance commonly used by first home buyers with smaller deposits will also be axed. In addition, first home buyers can salary sacrifice up to $15k annually into superannuation to accumulate a deposit starting from July 1 this year. Not only will these contributions be taxed at just 15c in the dollar but a tax advantage is provided to those paying higher tax rates on income. The maximum amount of $30k can be saved individually or $60k per couple. Once the money is withdrawn it is taxed at a marginal rate of less than 30 per cent and for the average person this will increase savings 30 percent more than a standard bank account.

It’s not all about first home buyers though – If you’re lucky enough to be a retiree, over 65’s have their own new incentive added to the budget that starts from the 1st of July 2018. The plan entails that a maximum of $300k can be transferred into their superannuation from the sale of a family home (primary residence) that has been owned for 10 years or more. This contribution is non-concessional and you can still add voluntary contributions under the existing rules.

If you’re thinking of investing, buying your first home or possibly downsizing, we offer a broad range of new off the plan apartments with many already under construction, just take a look below.

Ray White Projects also works in conjunction with Loan Market – Ray White’s very own mortgage experts. You’ll speak to someone experienced that can offer exclusive offers and has the power to negotiate a competitive deal that could help you save money on your loan.

View our projects here!

Figures sourced from: The Australian,, The Real Estate Conversation and Ray White.