Investment Properties

New rules will apply to sellers of certain taxable Australian property under contracts entered into from 1 July 2016. The new legislation imposes a 10% non-final withholding obligation on the purchaser of certain taxable Australian assets when they believe the vendor is a foreign resident. Purchasers will be required to pay 10% of the purchase price to the ATO which... Read more

Over the past 12 months, combined capital city home values have increased by 7.6%, with the annual rate of growth down from a recent peak of 11.1% recorded in July last year. Melbourne has maintained its number one growth position, with annual capital gains of 11.1%. Sydney’s annual rate of growth has continued to moderate, having almost halved from its... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 9 2016 Key points Very expensive housing and high household debt leave Australian housing vulnerable. However, in the absence of either a recession or  much higher interest rates a property crash looks unlikely. The Sydney and Melbourne property markets are likely to slow further... Read more

Under ordinary circumstances the sale of a property that you purchased after 20 September 1985 would attract Capital Gains Tax (CGT). Any gain made on the sale is included in your assessable income in that financial year.  The gain from the sale of a CGT asset can be reduced by 50% when you have held the asset for more than... Read more

When you have found the right property and need a deposit to secure the purchase, a deposit guarantee may assist buyers whose funds are currently tied up. A deposit guarantee is a substitute for the cash deposit. The deposit guarantee is issued by a guarantor, for a fee based on its value and duration of cover. At the time of... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 36 2015 Key points Australian housing remains overvalued and this has one hand in hand with high household debt. Against  this, supply has been constrained and there has not been a deterioration in lending standards. The hot Sydney and Melbourne property markets are showing... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 18 2015 Key points In response to pressure from APRA, lenders are starting to tighten lending conditions to property investors. This is designed to slow property investor lending, particularly into the strong Sydney property market, while at the same time allowing the RBA flexibility... Read more

Some clients that we have assisted with property transactions have been unaware of the Premium Property Stamp Duty payable on residential property transactions in excess of $3 million. The duty payable is calculated as $150,490 plus $7 for every $100 that exceeds $3 million. In comparison, the rate for properties less than $3 million pay duty at the lower rate... Read more

A property in NSW with a swimming pool will be required to have a certificate of compliance before it can be sold or leased. The deadline for this has just been postponed by one year to 29th April 2016. Property owners are urged to commence this process promptly as there are reportedly long lead times for certifiers to carry out... Read more

When you have found the right property and need a deposit to secure the purchase, a deposit guarantee may assist buyers whose funds are currently tied up. A deposit guarantee is a substitute for the cash deposit. The deposit guarantee is issued by a guarantor, for a fee based on its value and duration of cover. At the time of... Read more