Announcement posted by Chan & Naylor 22 May 2017
It is interesting how Australia's major capital cities perform in terms of cumulative equity growth from year 2000 to the present. Melbourne has been outperforming Sydney, Brisbane and Perth since 2005 because of its population growth driving the demand and its diverse economy continues to support the country's capital growth.
The illustration shows how cities were affected by different factors and events and how each market has its own cycle. Last year, the median house price in Melbourne is $725,000 and it increased by 13.7% or $99,325 with an average of $8,277.08 per month. Based on statistics, an average Australian takes nine months to buy a home or investment property. These factors show that buyers are adding about $75,000 to their budget.
Meanwhile, under the recently delivered Budget, downsizers may be able to make post-tax contribution to superannuation of up to $300,000 from the proceeds of selling their home, even if they exceed the $1.6 million cap, provided they meet certain qualifications. First home buyers who make extra voluntary super contributions of up to $15,000 a year may withdraw it to pay for a deposit and will be taxed at their marginal tax rate minus a 30% tax offset. Those who will sell an investment property will be subject to CGT at a marginal tax rate but those who hold a property for more than a year will get a discount of 50% on their CGT tax assessment. Main residences remain completely tax free.
For more information about property investment in Australia, contact a Specialist to discuss your particular circumstances. If you like what you are reading, subscribe to our newsletters now at www.chan-naylor.com.au
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