Managing your family home isn’t just about creating a cozy living space—it’s also a savvy investment, especially in today’s Australian property market. With all the shifts and shakes in the economy, your home remains a solid piece of your financial plan.
A Look Across Australia
It’s not just Perth that’s having a moment; the entire Australian property market is showing some strong signs of growth. While Perth has had its share of the spotlight, the bigger picture from CoreLogic shows that owning property anywhere in Australia continues to be a solid choice, thanks to steady economic conditions and ongoing demand (CoreLogic Australia).
Making the Most of Your Property Investment
Things are even better when gearing is involved. ‘Gearing’ is a fancy word for borrowing – and most people borrow money to buy their family home. If you start with 20% equity (and borrow the remaining 80% of the purchase price), and the house doubles in value, then the value of your equity increases to 60% of the increased value of the house. The proportion of debt halves when the value of the property doubles.
Tax and Government Incentives
One of the biggest perks of buying your own home in Australia? No Capital Gains Tax (CGT) on your primary residence. This means when you decide to sell, any profit you make is all yours—tax-free. That’s a financial high-five! But that’s not all—there are also several government incentives aimed at making home ownership more accessible and affordable such as First Home Owner Grant, Stamp Duty Concessions, First Home Super Saver Scheme. Each of these programs has specific eligibility requirements and conditions, and for the most accurate and relevant information, we recommend checking the latest details on official state or territory revenue offices or the Australian Government’s First Home Owner Grant portal via the links we provided above. As always, feel free to contact us directly if you need assistance in determining your eligibility.
What’s the Market Buzz?
Even with interest rate uncertainty and cost of living concern, the market appears to still be on an upswing. Sure, it’s not the gold rush days, but property values are expected to keep climbing in 2024 although at a slower rate relative to 2023, according to a research from CoreLogic Australia.
Going Forward
While there are ups and downs to owning a home, the financial upsides—like boosting your investment through leverage, tax and government incentives, and riding the wave of market growth—are pretty compelling. Whether you’re buying or selling, keeping up with the latest market insights and getting expert advice could make a big difference in your real estate game.
So, think of your home not just as your personal retreat, but as a key player in your financial strategy. It’s more than just walls and a roof—it’s your financial future on solid ground! As always, if you need any assistance with significant purchases like a home, feel free to reach out to us. We’re here to help guide you through these important decisions.
