In this week’s episode of the Property Planner, Buyer and Professor Podcast, the team dive into more property myths that can lead purchasers down the garden path to poor property decisions. First, they share their market insights, as Dave, Cate and Pete take you through:
- Weekly market insights 1 – New home loans see a record jump in August
ABS figures released for August show a jump of 12.6% increase in new home loans (excluding refinances), and the largest month on month increase since 2002. It’s also the first time in 11 years that there’s been more first home buyers than investors purchasing in the market. So, what does that entail for the property market? The trio share their insights.
- Weekly market insights 2 – More than 50% of mortgage repayment holidays have ceased
In a really encouraging sign, more than half of the Australian’s who opted for repayment holidays have recommenced their repayments, contributing to a more positive outlook for our economic recovery than the previously reported forecasts.
- Weekly market insights 3 – Property prices remain resilient
CoreLogic data for the last quarter reveals that Sydney is down by 0.9% and Melbourne 0.27%, while Adelaide, Brisbane and Perth have increased. As the trio revealed in “Market update #7”, history shows that during previous economic downturns, property prices have remained stable due to low interest rates and reductions in supply as well as demand. This recession is no different, history repeats!
- Myth #1: You need a 20% deposit to purchase a property
This is wrong on two levels: the amount that you pay to a real estate agent that you’re not willing to walk away from and your contribution to settlement are two different things (and neither of them are required to equate to 20%). The trio explain why.
- Myth #2: A successful auction bidder doesn’t need skill, only the most money
Planning and preparation does the heavy lifting for getting great results. Your strategy and behaviour can knock the competition out of the park, even if their pockets are deeper than yours. We share with you the tactics that will have opponent auction bidders shaking in their boots, (even if you are shaking too).
- Myth #3: You lose your First Home Owner’s grant if you purchase an investment property
Many people incorrectly believe that if you purchase an investment property first, you’re no longer eligible for the First Home Owner’s grant when you then go to purchase your home. The Planner, Buyer and Professor reveal how you can access the grant, even if you’re not a first-time buyer.
- Myth #4: Eligibility for the 6-year capital gains tax investment exemption
If you’re thinking of moving out of your principle place of residence and renting it out, there are key requirements that are often missed by many in order to claim the capital gains tax exemption. But is this strategy right for you? The property with the highest capital growth prospects is the one you want to be claiming the exemption on.
- Myth #5: Off-markets opportunities are all motivated vendors
The reality is that there are 3 different kinds of off-markets and only one that is worth your time. Home buying is a lengthy process as it is, and time is our most precious commodity. Don’t get caught out with time-wasters!
- And of course, our ‘gold nuggets’
David Johnston- The Property Planner’s Golden nugget: if you’re considering moving to a new location and you have an existing PPOR and you’re looking at buying a new home, move to the new location and trial living there first. Figure out if you enjoy the new job, enjoy the new location before committing to the purchase. When you do comit to the purchase, make sure you spend the time necessary to optimise your mortgage strategy, tax strategy and property planning strategy, as there’s a lot to consider and work through when your transitioning from a PPOR to a new PPOR and whether you keep the old one as an investment property.
Cate Bakos – The Property Buyer’s Golden nugget: work out your walk-away price with some science long before auction day. If you get a little nervous, remember that everyone who wants to bid is feeling nervous too, speak up, do it loudly, don’t consult, remember your magic number – you’ll be surprised at just how intimidating you can be even if you feel like you’re shaking in your boots.