Why Melbourne Property Market is Still Holding Strong
Now that 2020 is done and dusted there is great news on the horizon for property investors such as yourself looking to invest in Melbourne property.
How We Survived the COVID19 Pandemic
Record low-interest rates, home loan holidays and working from home may have prevented the Australian property market from crashing during the COVID-19 pandemic.
As a whole, between March and October 2020, Aussie home values fell just 1.7 per cent. In October they even rose – posting a marginal but technically significant 0.4 per cent increase.
What to look forward to in 2021
In a bid to stimulate economic activity, the reduced cash rate has lowered bank funding costs, leading to record-low mortgage rates.
Furthermore, the Victorian State Government are promising a 50% stamp duty rate cut for new build homes and 25% for existing properties until the end of June 2021.
This means that Melbourne home buyers with a budget of less than $1 million are set to be the biggest winners out of a Victorian budget that has pledged to slash stamp duty fees, saving house hunters tens of thousands of dollars, allowing you to buy a property sooner. For established areas, locals have also been snapping up off-the-plans units (apartments & townhouses) due to the historically low-interest rates and the stamp duty savings. The local auction sales results have been deemed back to pre-covid levels, with a large pool of buyers and limited listings. This might be the only time that the Australian government is giving out a bundle of incentives and those who are ready, has benefited greatly from it.
The discounts would be substantial in suburbs like Cranbourne, Wyndham Vale and Melton, where the cost of stamp duty usually starts at around $18,000 for the median-priced home if homebuyers are buying brand new.
STAMP DUTY UPDATE: Latest Victoria’s Budget announced that stamp duty for properties under $1 million will be entitled to a 50% discount from 25th November 2020 to 30 June 2021)
If you’re looking to invest in Melbourne property, now is the time to take advantage of these stamp duty rate cuts and unique market situation. With the success in curbing and containing the spread of COVID-19 achieved by the Victoria government, Melbourne’s market has recovered fast. The window of opportunity is gradually closing.
Secure your home today with one of our properties.