Over the month of July, the initial effects from the recent election and cash rate drop by the RBA appear to be positive with each of the major cities experiencing an upward trend in auction clearance rates. Most notably, Sydney’s preliminary auction clearance rate for last Saturday was 78% – the highest level achieved in over two years. Although certainly a clear indication of a rise in buyer activity, it can also be argued to lower than normal stock levels have contributed to these statistics and that Spring remains the true test for the new property landscape. Epping is no exception to this and has enjoyed successive auction weekends with clearances hovering at approximately 70%. If these last two months are anything to go by however, market perceptions appear positive for the remainder of the year and has certainly brought with it a sense of vendor confidence which had been trending downwards since the previous boom.
On the ground, open for inspection numbers across the board have increased and auction registrations have sharply increased. A notable example being our most recent auction at 14 Neil Street, Epping which had been guiding $1650,000 throughout its four-week campaign. On the day we had a total of sixteen registered bidders and attained a sale result well above our client’s expectations at $2,00,000.
Looking at the July results for Epping and North Epping the volume of property transactions has continued to remain high compared to the previous month of June. This is arguably due to market conditions improving post the election and interest rate cut by the RBA. A number of the results are yet to be disclosed however, the highest currently released price was attained by 19 Grandview Parade, Epping which achieved a sale price of $2,810,000 which is also the highest result to be attained so far in 2019. By this, it can easily be argued that the prestige market is showing signs of returning to strength in the second half of 2019.
Moving overseas? Now is the time to sell your family home or investment property – Contributed by Omega Legal
Tax time is a reminder to property investors who plan to move overseas to be aware of potential tax implications. In NSW, a foreign investor must pay a surcharge land tax, which is currently calculated at 2% of the taxable value of their residential land. A foreign investor is an individual who is not an Australian citizen or not ordinarily resident in Australia.
In a standard contract for sale of land, surcharge land tax is not adjustable which means it must be paid in full by the vendor before or at settlement. Capital gains tax (CGT) consequences for foreign investors must also be considered. If you move overseas and rent out your family home, and then decide to sell your Australian home while still overseas, you may not be entitled to any CGT discount or exemption on the proceeds of sale.
If you or someone you know have plans to move overseas, it may be better to sell your property sooner than later to avoid paying an expensive tax bill in the long run.
If you are planning to sell your property this year, obtaining legal advice early will help ensure a smooth conveyancing process. Contact Omega Legal at firstname.lastname@example.org or call 0402 990 108 to find out more.