News
Latest News
Date: 09 Jun 2010
Home buyers enjoy cuts to stamp duty!
In a bid to make buying a house in Sydney that little bit easier, the NSW government has announced that it will no longer charge stamp duty on homes that are “bought off the plan” for less than $600,000.
The change in state policy will cost the NSW government approximately $184 million in lost property taxes.
Stamp duty will be cut by 25 per cent on homes worth up to $600,000 that are bought during construction or at completion, translating into an average saving of $5,623.
The stamp duty changes are expected to be widely welcomed by NSW buyers, as 79.1 per cent of dwellings within the state are sold for under $600,000.
In addition, the government has also introduced other concessions on new home purchases and construction.
NSW Treasurer Eric Roozendaal said the $140 million property construction initiative will save NSW families and investors up $22,490, with first home buyers eligible to receive benefits of up to $29,490.
“This is an Australian-first, signalling the Keneally government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.
NSW building industry body the Urban Taskforce said the government’s latest announcement shows a clear understanding of the need to increase housing supply in NSW.
“This plan is comprehensive – it offers real hope for homebuyers and renters,” Urban Taskforce chief executive officer Aaron Gadiel said.
According to Mr Gadiel, the targeted stamp duty concession is also a welcome message of support to older Australians and will help industry focus on meeting their housing needs.
“When older Australians make the decision to downsize, they will also be freeing up underutilized existing housing stock which can be occupied by younger families,” he said.
The Synapse Team
Date: 03 Mar 2010
Another Rate Hike!
We have all been hit with a 0.25 per cent interest rate rise today, following the Reserve Bank Board’s meeting.
The increase could be the first of three or four rises to come this year. The Reserve Bank has indicated it intends to raise rates now that the economy is picking up. However, we are all still better off than having the interest fixed at this stage as most fixed interest rates are already an extra percent higher than the variable rate, some even more.
“The news is double-edged,” says property writer Carolyn Boyd. “Home owners will be paying bigger mortgages, but at the same time the rise is a further sign the economy is improving and people can feel more secure in their jobs.”
The 25 basis point rise takes the official interest rate to 4 per cent. The rate has many more rises to go before it reaches the most recent peak of 7.25 per cent, which it hit two years ago, in March 2008.
Until today’s decision, mortgage holders on variable interest rates were paying average about 6.5 per cent (although most of you are paying below 6%), and rates are expected to normalize at around 7.5 per cent by year’s end.
If anyone has any issues or concerns with the rate rise, please don’t hesitate to send me an email or give me a call as i am more than happy to assist you.
The Synapse Team
Date: 01 Dec 2009
RBA hikes interest rates to 3.75pc,
THE Reserve Bank has lifted interest rates by 25 points to 3.75 per cent.
It is the first time the bank has lifted interest rates three months in a row since it began announcing such moves in January 1990.
The move will add around $47 a month to repayments on an average $300,000 mortgage, assuming retail banks match the move.
If anyone has any questions at all regarding the interest rate rise or questions in general, please don’t hesitate to email me or call me as I am more than happy to answer any questions.
Date: 03 Nov 2009
Dear Customers,
The Reserve Bank board has increased its official interest rate again from 3.25 per cent to 3.5 per cent.
ANZ has also announced it is raising it’s standard variable home loan rate by 0.25 per cent taking it to 6.31 per cent and spokespersons from the other three major banks, NAB, Commonwealth and Westpac said their interest rates were under review.
A 25 basis point increase to the official rate means an additional $46 a month in repayments on a $300,000 home loan, according to comparison website Canstar Cannex.
If anyone has any questions at all regarding the interest rate rise or questions in general, please don’t hesitate to email me or call me as I am more than happy to answer any questions.
Date: 09 Oct 2009
As you are most likely be aware by now, the official cash rate has increased by 0.25% so most of you with variable interest rate loans will also increase.
The amount of the increase in most cases is 0.25% on top of your existing interest rate but I did notice that Rams Basic home loan did go up by 0.35%
To most of you, 0.25% increase on a $300,000 loan will equal to around $46 extra per month but all lenders in Australia would have increased the interest rate and not just your loan.
To overcome this rise and any future rises for that matter, I would suggest to make a little extra payment on top of your minimum payments. This way the change won’t impact you as much.
With the interest rates being where it is at the moment, you would all still be better off with variable interest rate than fixed interest rate as most, if not all 5 years fixed are well into the mid 7% interest rate.
If anyone has any questions at all regarding the interest rate rise or questions in general, please don’t hesitate to email me or call me as I am more than happy to answer any questions.
Date: 13 May 2009
Budget Changes To The Home Owners Grant Scheme
First Home Owners Grant scheme has been retained, but the scheme is set to end at December 2009.
The situation post 1 July 2009
The First Home Owner Grant Scheme will continue for an additional six months until 31 December 2009.
The grant will continue at current levels until 30 September 2009.
From 1 October to 31 December 2009, the total grant will halve to $10,500 for established homes and $14,000 for new homes (both figures include the $7,000 First Home Owners grant with the respective “boost” amount halving).
Date: 6 May 2009
Victoria extends own first home grant
But there’ll be a marginal drop in the state bonus offered to people who buy existing dwellings.
As the Brumby Government tries to stimulate building activity amid the global recession, Victoria’s first home bonus for newly constructed properties will more than double.
From July 1, first time buyers purchasing new properties in metropolitan Melbourne will receive $11,000, up from the current $5000. Those buying new homes in regional areas will get $15,500, up from the current $8000.
The funding boost is on top of the federal grant scheme, which currently stands at $14,000 for existing homes and $21,000 for new homes. However, those grants could be scaled back to $7000 when the Federal Budget is handed down on Tuesday. If that happens, the maximum handout for Victorian first home buyers, taking into account both schemes, will be $22,500 from July 1.
Date: 5 May 2009
Reserve Bank keeps interest rates on hold at 3%
In its monthly board meeting today, the central bank decided not to cut interest rates. Most economists were expecting the cash rate to remain unchanged at a 49-year low.
In a statement released after the announcement, governor Glenn Stevens said conditions in global financial markets remain generally “on a path of gradual improvement”.
“The considerable economic policy stimulus in train in most countries should help contain the downturn and support an eventual recovery,” Mr Stevens said.
But today’s decision may not signal the end of the rate reduction cycle, with financial markets are pricing in at least another 50 basis points worth of reductions this year.
Date: 8 April 2009
Low Rate Money Beater
Australia’s largest building society, Heritage, has announced that it will pass on the full 0.25 per cent interest rate decrease to its variable mortgage interest rates following yesterday’s official announcement by the Reserve Bank of Australia (RBA) to decrease the official cash rate. Their Market Leading Basic Home Loan with NO ON GOING FEES is now at 4.82% Variable!
Date: 7 April 2009
Reserve Bank Drops Cash Rate by 0.25%!
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 3.0 per cent, effective 8 April 2009.
Recent information from abroad indicates that the contraction in the global economy continued during the first few months of this year, and most assessments of the near-term outlook have been further marked down. Considerable economic policy stimulus is in train in most countries, the full effects of which are not yet discernible, but which should help contain the downturn over the rest of the year. There are tentative signs of stabilisation in several countries, including China, though it is too early yet to judge how durable these will prove to be.
