Sydney House Prices
Tax Depreciation Sydney House Prices
In a recent report conducted by Quality Surveyors home prices in Sydney suburbs will have large value increases. The report suggests there will be about 12 percent growth in about 15 suburbs, which some include Homebush, Petersham, and Ryde. In recent years though, these particular areas have been overshadowed by more popular neighbourhoods, which now are coming into the spotlight. As potential homebuyers are being pushed from higher priced suburbs, they are continuing to look for home ownership, and there are still great value suburbs available.
These increasing home prices are due to the local Sydney economy being in a bull market, while the bull market will have overall tax depreciation effects in Sydney. With home prices continuing to grow, but most likely at a modest five to seven percent increase, this could be a nice break from the extreme growth of the previous few years. With the extreme growth tapering off it will allow more value priced buyers an opportunity to enter the market.
As the interest rates were kept low, the Reserve Bank Governor has issued a statement warning that buyers who aggressively leveraged themselves in the previous years to take advantage of the favourable tax depreciation schedule in Sydney, could be in for a large hit this year.
As there are many reports of doom and gloom circulating, there is still a good amount of hope in the housing market. The senior economist, Andrew Wilson, of the Domain Group is suggesting that there will still be an increase in the market. The trends are pointing to continued buyer confidence which will allow for growth in the housing market.
The growth the areas we will see are going to come from the more “value” perceived suburbs. This will allow buyers to continue to take advantage of favourable Sydney prices. Also, the main attraction of these areas is the perceived affordability of the homes. This perception will allow the continued growth of the market.
As the bull market continues in the Sydney area, which the definition of a bull market is if there are eight or more people registering for an auction, there will be continued interest in home ownership. Although not everybody is confirmed in saying it is a bull market or a boom, the big thing to consider is the implications of market growth.
The growth in the suburban housing market is a renewed interest in the rejuvenation of suburban cities. As more individuals move into the areas, with higher incomes, this allows for more money to be put towards the rejuvenation of suburban cities. As the cities issue bonds to finance these projects, the individuals that purchase these bonds will have special benefits in Sydney and the outlying areas.
Quality Surveyors is looking to assist clients with this great market opportunity for home ownership, as well as the tax depreciation that can be taken advantage of. When Quality Surveyors takes your depreciation schedule into consideration, they will provide the most sound advice to maximise the benefits of the growing market.