Market Update

As the Australian property market

heads toward winter, there’s

reason to be happy about its

controlled exit from the strong

growth conditions of 2009/10.

However, the potential for

Government induced structural

change has property investors

justly concerned.

With the October Tax Summit

looming, the Federal Treasurer is

mooting changes to negative

gearing arrangements, the

introduction of a 4% levy on the

sale of investment property, and,

the abolition of stamp duty - its

replacement to be a land tax

levied on everything including the

family home.

Such changes could encourage

risky offshore property investment,

force up rents and inflict

substantial damage on home

building in Australia. Find out why

inside…

Politically Risky

Business

Issue 4 | May 2011 We put you first

Jason Bentley Jason offers the professionalism, experience

and drive to achieve outstanding results.

If you’re looking to buy a new home or investment,

need to sell a property, or you’re just wondering

what your home’s currently worth, call Jason today

on 0419 355 875.

Register for priority property alerts on our website TODAY

0419 355 875

jason@firstnationalgawler.com.au

www.firstnationalgawler.com.au

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To Subscribe to this newsletter, please call or email me with your

details and I will gladly forward you a copy every month.

Feature Property | 30 Reginald Pde, Craigmore ID# 1628913

Is The Government Against Investors and Tenants?

First National Real Estate (FNRE) has criticized

industry representatives who have said in

recent media reports that the property

industry would support moves to replace

stamp duties with a broadening land tax or

any other tax.

‘As far as we are concerned, when the GST

was introduced, it was meant to phase out a

number of various state and territory

government taxes, duties and levies such as

banking taxes and stamp duty’ said Chief

Executive, Ray Ellis.

Suggestions that Stamp Duty should be

replaced with Death Duties or a broad based,

higher land tax - that would include the family

home - would have the potential to drive

investment into the ground and slow a safely

moderating market.

Additionally, the Treasurer Wayne Swan has

floated the idea of a new 4% sales tax on the

sale of investment housing, similar to the

initiative that brought building to a halt for the

NSW Government in 2004.

Negative gearing also appears to be up for

reconsideration at the forthcoming Tax

Summit.

With a dramatic shortage of housing and an

already tight rental market, disincentives for

property investment could see a rush by

investors for the exits.

Negative gearing ensures a significant supply

of rental housing, which also holds down

rents. Any dislocation in investment housing

would affect those who can least afford it,

people who pay rent.

For property market updates and news, visit…

www.firstnationalnews.com

Designed for Living This wonderful home has truly been designed with comfortable

living in mind. Boasting large living areas and outside

entertainment area, this impeccably presented property will be

sure to please.

Property Features:

Wide tiled entry with 9 foot ceilings

Elegant formal lounge and dining areas with

leadlight feature bay window

Good sized master bedroom with ceiling fan plus

large well appointed ensuite and large walk in robe

Bedrooms 2 and 3 both with built in robes and

ceiling fans

Cloak room storage closet to front entrance hall

Well appointed 3 way bathroom

Laundry

Huge chef inspired kitchen with bay window,

pantry, pura tap, gas cook top, wall oven, breakfast

bar, ample cupboards and bench space plus down

lights and meals area

Gigantic tiled family room with combustion style gas

heater which overlooks the manicured rear gardens

and entertainment area

Substantial all weather gabled verandah with cafe

blinds and tropical fernery plus access to double

garage

Manicured gardens and lawns with watering system

and a good sized garden shed

Ducted evaporative cooling, gas hot water and

roller shutters

Plus More....

All of these fabulous features and a level of presentation that

cannot be surpassed. You will have to be quick as to not miss

out on this outstanding opportunity to own this immaculate

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hub, local schools and easy access to the Edinburgh RAAF

base are a few extras bonuses that should not be forgotten.

Call for an appointment to inspect TODAY!

Register Your Property Wish List... www.firstnationalgawler.com.au

RLA 222770

Register Your Property Wish List... www.firstnationalgawler.com.au

Recent Sales

US Investment – Easy Pickings or Flipping Mad?

As the Australian dollar heads for US$1.10, some Australians

have begun investing in American housing. There’s potentially

a triple gain to be had – great exchange rate, distressed

prices and strong yields. Is it to good to be true?

Websites claiming cash flow-positive returns of up to 28% have

sprung up, get-rich-quick property spruikers are pressuring

buyers, and, ASIC has warned investors to be wary of

invitations to ‘exclusive’ and ‘premier wealth’ events.

There is a practice commonly known as ‘flipping’ in the USA.

This is where property promoters buy houses, usually from

banks, at fire-sale prices as low as $30,000, and then sell the

assets to Australians for an inflated price of about $50,000.

Some investors have discovered that their houses are in the

middle of slums, have been broken into and had fittings

ripped out, and are consequently impossible to rent.

With Wall Street Journal reports that the recovery of US

housing is likely to be slow and painful. With the housing bust

dragging into its fifth year already, would-be investors are

advised to exercise extreme caution or simply buy locally,

where investments can be properly assessed.

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4 bed, 2 bath, 4 car

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2 Gerrard Avenue

PARALOWIE. Reduced to Sell.

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23 Gosford Street

GAWLER WEST. Simply the Best.

3 bed, 1 bath, 1 car

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40 Kakuna Crescent

CRAIGMORE. Too Good To Miss.

3 bed, 1 bath, 1 car

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33 Enterprise Circuit

ANDREWS FARM. Great Opportunity for a New

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3 bed, 2/ bath, 2 car

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1/23 Twenty-Fifth Street

GAWLER SOUTH. Great Starter with a Surprise

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RLA 222770

13% of all USA homes are vacant

High residential vacancies are killing many US housing markets, as foreclosed

homes sit on the market and depress overall property values. And, it’s getting

worse. The national vacancy rate crept to over 13% with the release of the latest

census figures.

Register Your Property Wish List... www.firstnationalgawler.com.au

Selling

firstnationalgawler.com.au

RLA 222770

Are Australian Homes

Overvalued?

The reasons that Australian houses are not

overvalued are threefold. Today’s economy has

solved the problem of high inflation, high interest

rates and restrictive credit that troubled the housing

market 20 years ago.

Historically high population growth, near full

employment and prices that have broadly tracked

income growth all underpin stability.

Household debt is decreasing and is held by those

who can most afford it. Savings are at near historic

highs. What’s more, less than 1% of mortgages are in

arrears in Australia.

The lights have turned green. What are you waiting

for?