Foreigner property taxes are “over the top”

Foreigner property taxes are “over the top”

Most Australians believe the best way governments can assist the property market is to stop overburdening homebuyers with the crippling costs of stamp duty, according to a national survey. The poll by iBuyNew, which asked what the best way would be for government to assist the property market, found 55 per cent of respondents wanted to cut stamp duty. Thirty per cent of participants in the online survey suggested increasing first home buyer grants would be most effective, while 15 per cent called for negative gearing to be scrapped. Most governments remain over-reliant on stamp duty. State governments still have an unhealthy dependence on stamp duty which is just a drag on the economy and a handbrake on homebuyers. If governments are not prepared to abolish stamp duty, they should at least consider reductions or more concessions for certain buyers. Greedy state governments had also been behaving badly by slugging foreign investors with excessive new surcharges and tax increases. Foreigners buying property in Australia should be paying some tax but the measures that were recently announced by the NSW, Victorian and Queensland governments were over the top.   iBuyNew survey results:  *What would be the best way for government to assist the property market? Cut Stamp Duty 55% Increase first home owner grants 30% Abolish negative gearing 15% Property expert Mark Mendel is the chief executive officer of iBuyNew, an online property agency which sells off-the-plan property across Australia, including apartments, townhouses and house and land...

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Five tips on growing a profitable property portfolio

Five tips on growing a profitable property portfolio

As with any long-term wealth creation strategy, building a property portfolio takes a lot of time and careful consideration. The number one piece of advice I would give to anyone looking to grow a portfolio is to develop a good strategy before purchasing a property. Your main focus should be on buying safe, solid assets that will go up in value if you hold onto them for 10, 20, or 30 years. It’s also important to be realistic when developing an investment plan. Don’t aim to buy 5-10 properties tomorrow and become a millionaire overnight. Concentrate on taking simple steps in the beginning and buying one property at a time. Everyone is different and will prefer a different investment strategy depending on their knowledge, attitude to risk and level of involvement. With this in mind, below are my top tips for developing a successful portfolio.   1. Set goals The first step to developing an impressive portfolio is to set some objectives. Organise your finances and work out exactly how much money you have to work with and exactly what you want to achieve through your portfolio – e.g. long term capital growth or rental yields? This will give you a clear picture to work towards and help you better assess the suitability of various properties as potential investments.   2. Do your research While it can be tempting to buy into the first property you see, if you spend more time researching potential investments properly, you will gain more financially down the track. A property is a large value purchase and should be treated with careful consideration. Many established investors and buyer’s agents see 50-100 properties before picking the right one. Consider paying for the latest research into your chosen market. This will provide you with the latest trends and insights and enable you to make a well informed purchase decision.   3. Diversify your portfolio Remember to be selective about the properties you choose to invest in your portfolio. A great portfolio will have a mix of older properties that can be renovated to add immediate value...

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How Chinese international students are changing the Australian property market

How Chinese international students are changing the Australian property market

The high quality of Australia’s universities is a drawcard for international students, but accommodation availability is not keeping up with demand in Sydney. Australia’s international student population continues to grow at a double-digit rate, recent Savills International research shows. Australia hosted the third largest number of international students in the world, at 6.2 per cent in 2013, behind the US and UK at 19.4 and 10.3 per cent respectively. NSW has around 327,000 domestic higher education students with another 93,000 international students. The top countries: China, India, Vietnam, Republic of Korea and Malaysia. Chinese students dominated more than 27 per cent of the total number of international students in Australia in 2015. Australia ranked as the third most popular destination for Chinese students (12.1 per cent) after the US (33 per cent) and Japan (12.3 per cent). Australia was also third most popular for students from India after the US (48.2 per cent) and UK (11.5 per cent). This trend has made property investors, institutional and private, move beyond the traditional property markets into student accommodation, where the fundamentals are strong. Some 5 per cent of students are in university accommodation, 5 per cent are in commercial accommodation and 90 per cent rent privately or live at home. There is now a “critical undersupply” of appropriate Purpose Built Student Accommodation (PBSA) in Sydney, Savills Sydney Student Accommodation Director Conal Newland said. The high occupancy levels, robust revenue growth and attractive yield pricing make student accommodation an attractive investment, he said. Growing levels of investor activity have seen the student accommodation market change rapidly. Savills’ research indicates more than $2 billion of capital has been earmarked for development projects across Australia since the start of 2015. Several new institutional investors have entered the market, including Blue Sky Private Real Estate, Cedar Pacific, Global Student Accommodation, Scape, Valparaiso and Wee Hur. They have joined the likes of Unilodge, best known for their Central Park, Chippendale offerings. Savills nominated Urbanest as the most active off-campus developer with three properties completed since 2015 and another two in development. A number of universities, including...

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