What changes will affect the price of property in Adelaide as 2015 commences? There is widespread speculation around taxes, interest rates and the cooling housing market – will investment and owner-occupied housing be cheaper this year than last year? Maybe so.
The government is set to review taxes this year and it could be a big one. The Real Estate Institute of Australia (REIA) anticipates a major overhaul of the tax system and has banded together with other business and community representatives to ensure the interests of home buyers and industry operatives are considered.
"The current tax system is stagnating and is not reflective of current social trends for a more mobile population with taxes such as stamp duty restricting both labour and population mobility. REIA also wants to ensure that we present a strong case to [the] broader business community on the importance of negative gearing in allowing mum and dad investors the opportunity to help safeguard their retirement," said Amanda Lynch, CEO of the REIA in a 15 December statement.
The real estate market has seen significant growth and values are increasing, but the expectation is that property prices will grow at a decreased rate as a moderating trend continues. Late last year the REIA reported that prices in all capital cities except Melbourne and Sydney had slowed down – hopefully encouraging first home buyers to reenter the marketplace.
In the same release the REIA pointed out that industry expectations have switched from a rise in interest rates in 2015 to a potential drop, as market factors continue to demand stimulation from a low interest environment and other stimuli.
Those with rentals in Adelaide may consider adding more property to their stable this year as prices are expected to drop. The potential for increased yield is surely a tempting factor!
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