Recently, the Australian government officially announced that the "5% down payment can buy a house" policy promised by the coalition party before the federal election will be officially implemented on January 1 next year! As soon as the news came out, the industry generally further bullished the Australian property market in 2020. Now, it is the last chance before the house price takes off!
Recently, there have been frequent policies in the Australian economy. Under the effect of superposition, the driving effect on the property market is very obvious. The major positive policy for Australia's first home buyers will be officially implemented on January 1, 2020! By then, low-income Australians will only need a 5% down payment to have their own home!
In the past May, the 2019 Australian federal election dust settled!
The current Prime Minister Morrison won and issued a series of heavyweight policies for the real estate market:
1. The down payment for the first suite is reduced from 20% to 5%
2. Continue the negative tax deduction policy and asset value-added tax concessions to facilitate the promotion of real estate investment transactions
3. Save up to AUD 10,000 without purchasing lender mortgage insurance
4. The warranty period lasts until the loan term
5. Continue to implement the 10-year infrastructure plan and increase the funding from A$75 billion to A$100 billion
These policies undoubtedly gave the current Australian property market a shot in the arm, boosting the confidence of the property market!
5% down payment, what concept? If you are a first-time home buyer, you can purchase a set of 600,000 homes with only $30,000 down payment, $0 mortgage insurance LMI, $0 stamp duty (first home purchase subsidy policy, stamp duty free). This will stimulate the supply and demand of second-hand housing in the local area, and most of the 50-75 million just-needed property prices will rise sharply. Reid suggested that customers who had invested in the North District of the West District should start early and trade in the old ones, and the funds would be returned.
In addition, the Australian Prudential Regulation Authority (APRA) announced that it will reduce the minimum assessed mortgage pressure from 7.25% to 6.25%, enabling banks to provide loans to more borrowers, while also allowing homebuyers to increase their loans to purchase homes. This year, Australia has already seen three interest rate cuts. This month, as expected by the market, the RBA lowered its benchmark interest rate to a minimum of 0.75%, which is only one or two steps away from quantitative easing.
After the real estate market adjustment last year, the current Australian property is still relatively low, and the number of new housing starts is declining. The lack of supply in the market, especially the real estate market in Melbourne and Sydney, has rebounded rapidly in recent months. There will be more than 10% increase in 12 months.
At present, under the strong promotion of Australian Prime Minister Morrison, the state governments are speeding up the launch and promotion of various infrastructure projects. These projects include school refurbishment, road construction, water conservancy facilities, etc., which will create tens of thousands of jobs. Some state governments have already launched such infrastructure projects with a total investment of about A$1 billion. In addition to driving employment, the most obvious construction of infrastructure is to drive up housing prices.
Among them, the North East Link, the Sunbury, the Cranbourne and Hurstbrige train lines, and the Suburban Rail Loop are all eye-catching and eye-catching property investors. Infrastructure hotspot layout.
Since the beginning of the spring, the number of real estate for sale in Australia has increased by 4%, the number of auction participants has increased by 14%, and the liquidation rate has remained high. Domain executive editor Alice Stolz said: "We have seen real market improvement. With the increase in spring property inventory, a large number of buyers are also entering the market." Core Law chief economist Tim Lawless said, "Low-level loan interest rate is expected Continued downward adjustments, coupled with better affordability, loan easing and improved housing sentiment, are factors that drive up house prices. Housing clearances can remain at a medium to high level of 70%.” Bullish on the Australian property market in 2020, now is the last chance before the house price takes off! Investors should seize the opportunity !
