In Episode 25 of the Inspire & Inform Show, Colin reveals BREAKING NEWS! NSW Moves to Phase Out Stamp Duty
Please see below for the full transcript of this video
Hello, and welcome to Episode 25 of Inspire and Inform if this is your first time, welcome. My name is Colin Lee and I’m the founder and CEO of Inspire Realty. And the purpose of this is really to give you some information to inspire you, so that you can make wise decisions and informed decisions about your properties and property investments. So today, I just want to say that there has been a number of breaking news, and I’d love to share that breaking news to you and also just talk about how it actually affects your property or properties that you’re looking to purchase in the near future.
So firstly, I just want to say that I’m thinking of a lot of my friends out in South Australia. Recently, there has been a spike of cases in South Australia. I certainly have a number of friends and family members actually who are living in South Australia. So my heart and my thoughts go out to people from South Australia. I think the lockdowns do happen from 12, midnight tonight for about a week. So if you’re in South Australia, we are certainly thinking of you. And we hope that this will not be an extended lockdown, just like it has been in in Melbourne.
But I was listening to the radio, I was out doing a little bit of shopping, just buying a couple of gifts now for some of my clients. And I was hearing on the radio that people are bulk buying once again with tissue and toilet rolls. So mate, I’m just suggesting that you don’t have to panic. I’m sure this is all just going to slow, you know, and it has to happen the way it’s happened. But yeah, you know, just take it a little bit easy on the stocking up. But who am I to say I did stock up, put on my tissue papers when it happened. But you know, looking back, and I’m just like, why did I even do that? I don’t think it’s it’s necessary. There is certainly enough to go around. But anyway, just thinking about you guys in South Australia.
The other breaking news as well, is I’m not sure if you’ve heard recently, but there has been a major major announcement that New South Wales certainly is looking to stamp out or phase out stamp duty. And Dominic Perrottet has really been in the news quite recently, about a number of things. But I’m really he is suggesting that the reform to the stamp duty, which has been around for years and years and years, and you know, it does cost a lot of money to purchase an investment property. So you couple that with stamp duty, it just it’s out of reach for a lot of people. So I look, I think it’s a great change, the change is expected to happen in the second half of 2021, there’s still going to be a lot of consultations with industry and and, you know, people, so I’m not sure you know, if middle 2021 is going to happen. But hopefully that reform will happen in the second half, I guess similar to the stamp, not stamp duty but the first home, not first home the stamp rather the homebuilders $25,000 grant, it’s really only possibly applicable to citizens. So we don’t know yet. There’s a lot of details that’s yet to be released about it. But certainly it’s it’s a bit of a talk of the town at the moment. But the reform, obviously is for the inefficient stamp duty, that that’s been in place. And hopefully that will boost the economy and kickstart thousands of jobs to really help with the recovery of the property sector post pandemic. The danger of obviously, with that is that people will hold off buying properties until 2021. I certainly had a client today that had you know, been on a fairly long phone call with me today. You know, he was his family has been ready. And unfortunately, he’s not quite a citizen yet. So I think he’s kind of relatively safe. I don’t know if this reform will affect permanent residents. So we don’t know. But look, if you’re looking forward to purchasing a house, and now is a really good time to negotiate. I mean, now that this incentive is in place, potentially, this is a good way to negotiate mainly with developers to say, Hey, you know, I could wait six months, or you could potentially give me something that sweetens the deal for me to move ahead with this property investment. So yes, I think it’s it’s a great reform, not sure when it’s going to happen. But also it’s been talked about and initially now being proposed for owner occupiers. So once again, only for owner occupiers not so much for investors. Yes, so, so I’m yet to hear the conditions.
The other announcement, which has happened quite recently, as well. So let me just share my screen on this Let’s have a look at this. Yep. Yes. So I subscribe to the urban developer, which I think is really, really good for. For a lot of, you know, investors out there, you know, people that have been thinking that, you know, house prices may be on hold for a little while. But there has been a bit of an announcement from ANZ recently. The economists have said that they have revised or they are revising the house price forecasts from a bearish 10% decline Some even more 15% 20% you know, decline in property prices. Now, they’re revising all that based on the recent statistics and data to a lift of 9% in 2021. So the counterweight of low rates and government stimulus has really flowed through to housing construction approvals and sentiment, which economist Adelaide Trimble and Felicity Emmett said from ANZ so I think that’s really good news. It is projected for Brisbane, conservatively I’ve heard of, you know, a lot more than that, but conservatively ends up predicting that Brisbane to have gains of more than 9%, which is the new forecast, Sydney is predicted to have gains of 8.8% and Melbourne at a little bit less at a rise of about 7.8%. So that’s really good news for a lot of property owners and property investors. That not only ANZ, but a number of banks already have revised their forecasts and predictions about the nature of property prices in 2021 2022. So I think that’s really, really good news. I’m not usually this optimistic, but at this time of the year, we’re only weeks out of to Christmas, about a month, can you believe it a month before Christmas. But what a year this has been. So I’m glad that there’s some good news happening. And I’m just looking forward to 2021. And seeing how this all progresses, there’s certainly some really good incentives and, you know, incentives and grants out there, that is really applicable for a lot of people. So if you’re keen to explore and really understand how it all works, you know, I had a client today that is trying very hard to understand what negative gearing is. And I mean, you know, I take it for granted that I’m a property investor. And that comes quite naturally to me, but I’m just suggesting that, hey, you know, if you are, you know, curious about how it all works, now’s a good time to start exploring your own property portfolio and seeing how you can potentially diversify that and look at some really good opportunities, I’ve just recently been able to help a client invest in a property out in Melbourne, about 20, 25 minutes out, it’s a four bedroom house. Originally, the developers were selling the properties for about 530,000. But I’ve been able to really negotiate on behalf of my clients to get it down to just about $500,000. So they’re very, very happy, I’ve been able to also include some luxury upgrades to the value of 20,000 will probably cost him I don’t know, maybe 7-10 thousand dollars or more. But these are some of the extras that we’ve been able to help our investors to really get into the market.
Recently, I’ve also helped a number of clients to get pre approvals for their properties, a lot of people I am seeing, considering, you know, moving to Brisbane, so that’s been very, very positive. So look, it’s it’s been great, I just wanted to also say that the there is the lowest cash rate in history. So I’m just talking, I’m looking at some rates right now and we’re sitting at around 2% owner occupier rates fixed personally I fixed my loan at around 2% So look, I think it’s you know, never been a better time to fix your loan 2% I don’t know when we’re going to ever get this sort of, you know, low rate ever. So it’s worth having a bit of a think about and if you’re keen to have a chat with me, please give us a call or visit our website, www.inspirerealty.com for more information.
Certainly mortgage activity has picked up and this is just the middle of November and you can already see there’s quite a bit of a rise in mortgage activity. And it’s going to be like that till the end of the year. I’ve got enough loans that I am writing and pre approvals that I’m doing that will last me well into the new year. So I’ve been very very blessed and I just hope that that you know you can save a bit of money you know, a few hundred dollars or a few thousand dollars, certainly quite a lot of money if you if you add it all up over the years.
One final news before I head off for today. It’s good Gonna be a short session. Hopefully, you’d you’d stay on and and tune into our Inspire & Inform series every Wednesday, from about six to seven o’clock. Last breaking news and final good news is in the budget, it’s been announced that there’ll be $25 in fact, I went to dinner with my mom yesterday, we had some beautiful Korean barbecue with my family and it’s beautiful, absolutely beautiful. If you want to know where, you know, the best Korean barbecue is, please speak to me. I am not an expert, but I certainly love my Korean barbecue. So the the announcement and my mom said, Oh, look, Colin, you know, we get to spend $25. And I actually thought it was $25 or $100 to be spent and the government would give it every month now when kidding, but it’s it’s a one off $25 voucher, really to get people back into cafes into cinemas and amusement parks and just to get the economy going. So you know, when you do get that $25 voucher, you got to be over 18 and I think there’d be four vouchers over the year. Hopefully we’ll take advantage of that. But thank you to the New South Wales Government for these wonderful incentives to get the economy going again.
Hey, thank you so much for your time. Thank you for tuning in to Inspire and Inform once again, visit our website www.inspirerealty.com I’ve got over 140 something Google reviews. You know, I’ve just been so blessed to have so many clients really give us some really good testimonials and feedback for our services that we’ve provided. So if you’re keen to have a chat with us, go visit our website or give us a call. 1800 88 4663 or 1800 88 HOME. Thank you so much and have a good evening. Bye bye for now.