It’s no secret that new home sales fell precipitously in FY20, and all markets — including the Sydney property market — are being impacted by Covid-19. But that’s not all that influenced Sydney’s real estate, housing, and financial markets. Indeed, FY20 trends were a mixed bag of low cash rates, refinance bonuses, and property purchase plunges. But the question remains whether FY21 will continue these trends — or flout them.
A lot has happened over the past financial year — of course, the most notable of which has been the impact of COVID-19 in Australia.
Let’s take a look at some of the FY20 trends in property and mortgages .
Overall, the government has been hard at work trying to make it easier for home buyers to afford homes. At the same time, the market has been a little unpredictable — while Sydney’s market has proven itself to be resilient, there are still many external forces that are having an impact.
It’s hard to say whether any analysts have a true handle on what is to come for FY21, but there are many qualified guesses out there.
Most experts and economists are speculating about stamp duty potentially being on its way out, as the country looks to recover and even weather the economic impact of Covid. About 69 percent of respondents to a survey by comparison site Finder believe that stamp duty will be removed within the next year and a half, and most believe it will happen in 2021. About 80% of economists believe that stamp duty should be abolished entirely or replaced with an ongoing land tax. Regardless, it appears there is a significant amount of support for reforms.
Aside from stamp duty, there are other questions:
The world is changing. But despite there being many significant challenges in the road ahead, Australia has been able to weather the storm quite well. It’s likely that things are going to start to return to normalcy shortly.
Early in FY20, Australia’s real estate market was already encountering some challenges in terms of foreign investing and affordability. While the government had initiatives to counter this, COVID-19 threw a wrench in the works.
As we enter into FY21, we will likely continue to recover from the financial impact of the COVID-19 crisis, and we will see our real estate market continue to recoup.
If you’re looking to invest in property or refinance, however, there are few better times. The rates are still low right now; if you have cash to invest in the market, both the rates and property values may never be this low again. Those who are poised to take advantage of the current economic situation should consider investing now.
Shore Financial can help you with the right strategic advice so you can kick off your property goals for FY21. Get in touch with us today.