A quarter of first home buyers also considering purchasing investment property

New research from Westpac reveals a quarter of first home buyers are considering buying both an investment property and an owner-occupier home. Westpac’s latest Home Ownership Report shows first home buyers (FHBs) are feeling more confident than ever about their prospects of home ownership.

The report found 29 per cent of FHBs are considering buying both an investment property and an owner-occupier home. and the rise of positive sentiment among FHBs is hardly surprising.

This surge in confidence and positivity among first home buyers is great to see, and not surprising considering house prices have on average dipped by 2.7 per cent over the past year to date, primarily driven by the Sydney and Melbourne markets. Despite this optimism, a key barrier to first home buyers achieving their dream home remains saving enough for a deposit and upfront costs.

Market research group Propertyology has also noticed an increased interest in property investment from FHBs. Simon Pressley, managing director of Propertyology says more young people are prioritising investing earlier in life, and are turning to ‘rentvesting’.

“Rentvesting is arguably most popular among people in their mid-20s to 30s, especially those living in Sydney, because they’d rather not wait any longer than is essential to get a foot in the property ladder,” said Mr Pressley.

“For first-time property buyers, rentvesting enables you to get into the property market sooner with a smaller deposit, as opposed to taking several years to accumulate a bigger deposit and the market climbing even higher.”

Director of Right Property Group, Steve Waters, says there are many advantages FHBs have when buying an investment property.

“Young investors are usually tech savvy and can easily access and analyze data. They think quick and are fast to comprehend the available information,”

“Another advantage of being in your 20s and 30s is you haven’t yet hit your peak earning potential, so there’s usually some extra cash flow in your future to look forward to. Most of all, you get to start early and gain experience.”

4 upsides to downsizing

While it’s tempting to hold onto the family home because of the sentimental value, the reality is that it may be holding you back from a better lifestyle and a more comfortable financial situation. Downsizing could allow you to find a home that’s more appropriate to your lifestyle, while also freeing up time and money to use elsewhere.

  1. More funds to invest to create security in retirement or improve your lifestyle.  

Downsizing allows you to unlock the equity in your current home to use for investment purposes. If you are lucky, you may be at a point where you’ll be able to pay for your new home with cash.

  1. Fewer expenses.  

Downsizing can drastically reduce your expenses, from cutting your mortgage repayments to slashing your living costs. Energy is one area where you are likely to notice real savings when you move to a smaller property.

Let’s face it – bigger properties can be hard work.

Not everyone wants to spend their life maintaining a larger property or garden. Just think of what you could do with the time it takes to clean and maintain that great big house.

  1. Lifestyle benefits.

Looking for a sea change or a tree change? Downsizing could provide a great opportunity for you to live in a more desirable location, like beachside or countryside but most importantly in housing that is more suitable for your needs.

  1. Tax breaks.

In a recent Federal Budget, the Government announced plans to encourage older property owners to downsize. This is intended to help free up larger homes for younger, growing families.  Retirees are able to inject substantial sums into superannuation if they sell their home after they reach the age of 65.

The existing voluntary contribution rules for people aged 65 and older (work test for 65-74-year-olds, no contributions for those aged 75 and over) and restrictions on non-concessional contributions for people with balances above the lifetime limit do not apply to contributions made under the downsizing cap.

To qualify, you must have owned your property for 10 years. What’s great about this new initiative is that both members of a couple can take advantage of the measure for the same home. That’s double the current allowance for a couple downsizing to a new home.

However, keep in mind that the proceeds contributed to superannuation will be included in the assets test for any age pension qualification.

Original article by PAUL CHEVERALL


Stamp Duty Reform – What Does This Mean For You?

The NSW Government has proposed reduced stamp duty for residential property, in a move it is labelling ‘the most significant reform in a generation’.

Under the proposed changes, which are planned to come into effect from July, 2019 – the seven price brackets that determine how much stamp duty is paid will rise in line with inflation. NSW will be the first state that will index stamp duty brackets to CPI, a change that will promote savings on residential property transactions.

NSW Treasurer, Dominic Perrottet stated that the reform will ‘benefit many buyer types, from first homebuyers, downsizers or upgraders’. The reform, which seeks to peg stamp duty to CPI, will ‘reduce the tax burden on homebuyers’.

Although the stamp duty savings will be modest in the short term, over the long term, they will be substantial which will make it easier for people to realise the dream of owning their own home.  Director of Residential Sales at Colliers International, Peter Kerras outlines that ‘the reforms on stamp duty may allow purchasers to use more of their savings upfront towards the purchase of a property given the reduced burden of stamp duty’.

Under the First Home Owners Grant, which was introduced in 2017, first home buyers pay no stamp duty on new homes up to $600,000, before it shifts to a sliding scale between $600,000 – $800,000. However, it is unclear how the First Home Owners Grant may be impacted by the proposed changes in stamp duty. Peter Kerras goes on to state that ‘the reform will be beneficial, particularly for purchasers that cannot access the current First Home Owners Grants.’

It goes without saying that the State Governments move to reduce the burden of stamp duty for purchasers of residential property will greatly assist both buyers and sellers of property in NSW.

By Daniel Atkins for Colliers International


Property investors: did you get your tax deduction?

In a recent article by Anthony Keane, he advised that many of Australia’s 2.1 million rental property owners are missing out on thousands of dollars of tax deductions each year by failing to correctly calculate depreciation.

New figures from BMT Tax Depreciation show that since tax time started on July 1, its investor clients have achieved depreciation claims averaging $8893 per property. That’s much more than the latest Australian Taxation Office records showing average annual claims totaling $3600 for capital works (construction costs), plant and equipment as many investors failed to seek adequate advice.

“Thousands of dollars of legitimate tax deductions are being left on the table each year,” he said.

Big ticket items such as ovens and carpets often provided the biggest deductions, but investors should not ignore smaller items worth less than $300 — such as bins and smoke alarms — that could be claimed in full immediately. Capital works deductions were often $5000 in the first year.

Depreciation made owning rental properties more affordable, especially in the early years where there were the most cash flow pressures.

New rules introduced last financial year have taken some of the shine off depreciation deductions, but thousands of dollars can still be claimed by many property investors.


Originally published as This mistake can cost thousands at tax time


Central Coast is emerging as a new House Price Hotspot

Sydney’s prices remain the most expensive in the country by some distance, and this has prompted growing demand for areas outside of the capital as buyers search for affordability.

The Central Coast has been a key target given its proximity allowing residents to work in Sydney, and it’s prices are expected to rise by 3.6% in 2018 and 8% in 2019.


from Moody’s Analytics and Corelogic data


ATO formalises GST property settlement changes

The government recently decided to make some revisions to the process of paying Goods and Services Tax (GST) when acquiring residential properties.

Although the amount of the tax remains the same, buyers of new homes after 1 July 2018 are expected to take care of remitting their GST payments to the Australian Tax Office (ATO).

The Property Council of Australia Chief Executive Ken Morrison said that this was one of the biggest modifications to the way GST is being collected on property since its introduction twenty years ago.

“Previously, this was done by the developer. The overwhelming majority did the right thing and passed the GST they collected through to the ATO, but this measure has been introduced to deal with the minority who didn’t, through so-called ‘phoenixing’,” shared Morrison.

Affecting 70,000 property transactions a year, the new directive will oblige homebuyers to do extra work in order to guarantee their property’s settlement. Some of these additional steps will include submitting forms to the ATO and separating the GST from the purchase price of the property. 

“People buying property after 1 July should talk to their solicitor or settlement agent to ensure they have the right arrangements in place to meet this new requirement and ensure a smooth settlement process,” Morrison reminded those who wish to buy property.

Morrison added that The Property Council came prepared for the announcement as they had been investing in systems and staff training to aid the introduction of the new process and to minimise disruption or inconvenience to their customers.

For contracts entered before July 1, 2018, transitional agreements are already in place.

Stamp Duty in New South Wales

You can’t be certain of anything in property development; except taxes. It comes in many forms; however, Stamp Duty seems to be a particular cause of confusion and stress for a majority of property purchasers.

In this article, we clear up the clutter so that you may better understand how much tax you are required to pay, how much concession or exemption you may be entitled to and when you are required to pay it.

What is Stamp Duty?

Stamp duty is a tax levied on property purchases. Each state and territory governs its own rates but the amount payable will be determined by the purchase price, location and purpose. Some states charge different rates on investment properties than on places of residence.

New South Wales

A sale or transfer of land, including improvements in NSW will incur a liability known as Transfer Duty (Stamp Duty).

The liability for duty arises, and is payable, from the moment the sale or transfer occurs. However, if the sale or transfer is affected by a written instrument (contract or agreement or transfer), liability arises when the instrument is first executed. Payees need to pay the duty within three months from the date of this liability.

Therefore, if the property is purchased off-the-plan, the transfer duty must be paid within three months from the date of acceptance – normally the signing of the agreement.

Purchasers eligible for the First Home Buyers Assistance scheme, may be granted exemptions or concessions on transfer duty. This includes vacant land on which you intend to build your first home.

The First Home Buyers Assistance (FHBA) scheme provides eligible purchasers with exemptions on transfer duty on new and existing homes valued up to $650,000 and concessions on duty for new and existing homes valued between $650,000 and $800,000.

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000, and will receive concessions on duty for vacant land valued between $350,000 and $450,000.




As at 1st July 2017 the New South Wales government has made concessions for First Home Buyers of property purchases.

  • Stamp duty on all homes to a value of $650,000 has been abolished
  • Stamp duty relief has been offered on homes from $650,000 to $800,000
  • There is a $10,000 grant for builders of new homes up to $750,000 – and purchasers of new homes up to $600,000
  • Insurance duty on lenders’ mortgage insurance has been abolished
  • Foreign investors are now required to pay higher duties and land taxes
  • Investors cannot defer paying stamp duty on off-the-plan purchases

For more information, go to




So many families have begun the exciting journey to owning their own new home in a Yeramba Estate. Our new subdivision in Hamlyn Terrace on the Central Coast has introduced a new generation of happy land owners to this adventure.

First Home Owners can achieve their own home amongst the Hamlyn Terrace community. Affordable, well managed land subdivisions created by a reputable company such as Yeramba Estates, eases the concerns and leaves only the pleasure of building and owning a lovely new home. Always there for advice, Yeramba’s experience and knowledge is shared with our clients. As well, Empty Nesters and Upgraders find the Yeramba Estate community is a great investment for the future.

130 subdivisions in 52 years – Yeramba knows, Yeramba cares and our clients keep coming back.

For more information about our latest subdivision Hamlyn Grove, please contact Yeramba Estates on 94115155 or