2018 the year we all hope is better, in the later part of 2017 we did see an improvement in enquiry for renting and certainly an improvement in the amount of properties being leased.
The market is still very competitive with stock levels still high. In terms of sales, we are seeing small shoots of growth in terms of enquiry and also actual inspections on properties. Our Hills offices have seen some improved interest across the board in the later part of the year.
In terms of any real change of direction in the market I believe we will have a clearer vision by the end of March which will help many of us plan for the rest of 2018. Now in terms of pricing I can’t see there being big change but the real chance of securing a sale or letting a property I think will be on the improve.
We have a long way to travel in terms of growth and consistency to come. The main thing is the potential of stabilisation of pricing as an important step for us all going into the rest of the year. It’s been a battle for many who lost equity in their properties in the past couple of years and it has certainly impacted everyone.
Now for those who have not looked to sell or lease a property in the last couple of years they wouldn’t have noticed a thing to be honest, although they would have read plenty in the media. Thing is, if you are not in the market to do something much is ignored.
For the investors who are relying on higher rents, the market has impacted them and certainly strained their relationship with the banks in the last couple of years.
Interest only loans have changed as the bank regulators have tighten up with the banks, which has impacted many in the last two to three years causing what is now being called mortgage shock with the changes. Sadly many investors have now been told by their banks they will only roll over their loans as principal and interest loans.
Hopefully there are not too many more shocks coming our way and we have a more predictable economy in Western Australia going forward, confidence is the key now and from there we all have our fingers crossed this is the year to thrive and not just survive.
Thank you for your ongoing support and please do not hesitate to contact our team with your real estate, finance or settlement needs.
Milton Rendell, CEO
Goods and Services Taxation changes property industry
From July 1, 2018, the Federal Government will increase compliance with the Goods and Services Tax (GST) law requiring the purchaser of newly constructed resdential properties or new subdivisions to remit GST directly to the Australian Tax Office (ATO) as part of Settlement.
Under the current law (where GST is included in the purchase price and the developer remits the GST to the ATO) some developers are failing to remit the GST to the ATO despite having claimed GST credits on their construction costs.
The measure will require the purchase of newly constructed residential properties of new subdivisions to remit the GST on the purchase price directly to the ATO as part of Settlement for contract on or after July 1, 2018.
This measure is expected to be passed as a Federal law in early February 2018 and passed at the next sitting of parliament in March 2018.