Hi Guys, it’s Jason Mudford from OBrien Real Estate with another edition of the Property News for October 2020 where real estate information is on the house.
This week’s Federal Budget offered no relief for landlords who are bearing the brunt from the Victorian government’s 6-month extension on a moratorium of rents and rightly so as the nation cannot prop up Victoria. The relief for landlords will come in the form of tax cuts for their tenants and for themselves if they are working. Tax cuts of $1,080 will apply almost immediately for earners over $45K and $2,565 for earners over $90K. The tax cuts will improve households rental serviceability and allow landlords better loan serviceability.
Investors of real estate will need to bide their time and ride out the next 6 months and look at a way to improve their situation. Mortgage refinancing is the number area to focus on and we also recommend to look at risk mitigation and review your landlord insurance policies. Ultimately, rental moratoriums mean a lack of rental housing on the market which means renters will be limited by choice and tenancy applications will continue to be hotly contested.
The major initiative of the budget was the $4 billion Job Maker hiring plan for the young which is set to create 450,000 jobs. Employers of 16 to 30 year olds to be given a $200 a week credit and $100 for 30 to 35 year olds. On top of that the Job Trainer scheme for school leavers offering a $1.2 billion wage subsidy for traineeships and apprenticeships.
In other news: The RBA leaves the cash rate unchanged for October, with November now an odds on favourite to a 15 basis point cut. The good news for renters looking to rent is the First Home Loan Deposit scheme which will be extended with 10,000 new places, and now only being made available for new builds.
Corelogic released its September home price index and all capital cities rose in value except for Sydney and Melbourne. Since peaking in March, Melbourne values are down 5.5% but are still 3.1% up on this time 12 months ago. Forecasts in economic growth handed down in the federal budget look rosy for financial year 21/22 with a rise from 1.5% to 4.75% and unemployment is expected to fall to 6.50%.
And now for a little acknowledgement on our people’s success. The 2020 REIV awards for
excellence finalists are in and we are excited to announce OBrien are a finalist in the following 4
- Residential Property Manager of the Year – Anna Molinaro
- Community Service- OBrien Real Estate Foundation
- Innovation – OBrien Auction TV
- Residential Sales Person of the Year- Michelle Stephens
Congratulations to all the finalists and everyone involved and the best of luck to Anthony Molinaro from our Blackburn office in next week’s REIV senior auctioneering competition!
Remember, If you’re considering selling don’t forget the “Sell with OBrien” competition, due to the extended restrictions since we launched the competition in early September we have decided to extend the competition to 29 January 2021. To enter, list your home for sale with OBrien to go into a draw to win a Volkswagen Polo, an entertainment package or a furniture package.
That’s all for this week, I’m Jason Mudford and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in
relation to your unique circumstances.