Words are the best communication. I like to write and share about my passion, experience and story.
Welcome to May! Welcome to the biggest week in real estate. First we welcomed the decision of cutting official cash rate to 1.75% by RBA. CBA, Westpac and NAB passed in full (exclude ANZ).
Second, Turnbull Government first budget delivered at the same day with keeping negative gearing for investment properties, reduction in company taxes and increase middle income threshold to $87,000.
So, what is the relationship to real estate? It benefits homeowners and mum & dad investors.
1. Low interest rates reduces households mortgage pressure with borrowing capacity improves. Historically, reduction in interest rates will assist first home buyer in the purchase, we expect a push in quiet first home buyers market.
2. Negative gearing kept. Investors still be able to claim investment losses. It will sustain the investor activities in all markets for some time.
3. It helps the to improve the gloom. Perth sales statistics are dropping in the last week less properties for sale. We hope that the so call 'relieves' will assist the buyer in their home buying activities.
So what's next, WA State Treasurer Mike Nahan will announce his budget soon. State Government controls home buying incentives such as stamp duty exemption and first home owner grant. We hope for some good news especially for young home owners.
Ernest Ng. WA's Licensed Real Estate Agent. MARA's Registered Migration Agent