Another great weekend in Sydney’s steady and strong Real Estate market saw Auction clearance rates teetering around the 80% mark, still.
A hot and humid spring Saturday in Sydney saw a total of 533 Properties go to Auction out of a total 747 originally listed. The surprising thing is that the hammer dropped on a staggering 449 properties dropping the ‘clearance rate’ to 79%, However, it is important to view this figure proportionally against the number of properties Auctioned.
What is also important is to consider that, the 449 properties sold contributed $455,690,105 to the book for the agents around Sydney and the pockets of home owners throughout the market. This leaves the median Sydney house price, cleared at Auction at $950,500.
What do these record numbers mean?
Does this mean that we all need to be selling and furl our consideration of buying in the same market or does it mean that we should hold tight, wait for the next peak or trough?
Are investors driving the market?
Consider a few things;
Capital Gains Tax will always help level the playing field, however, Negative Gearing is a loophole well exploited by the savvy investor, but does this mean that families are paying the cost?
In short, no!
In fact, buying and living in your own home will actually provide a significant advantage for the average home owner.
Yes, there are tax breaks associated with investing, however, for a person or family with a single dwelling, there has never been a better time to grow capital in a necessity which can be conversely viewed as an investment.
Significant tax benefits in negatively gearing property investments provides great opportunities for investors and can somewhat distort the inflation of the property market, however, we must not be disheartened in a positive growth market.
It would not be advisable now, nor has it been advisable traditionally to view ones home solely as an investment, despite the advice ‘renovate for the buyers not for yourself’, with the hope of making money. Now, the savvy dweller, can be a savvy investor too.
Take advantage of the direction the market is heading and explore the opportunities the market is providing.
So don’t let the grim talk of negative-gearing disappearing rule your views for the selling and repurchasing property, the investors will look after themselves and the market will provide new and exciting opportunities despite its fluctuation or stagnancy.
Thomas Merriman.
Thomas Merriman 