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How will the recent NSW budget affect property prices

Written on the 24 June 2017 by James Cagney

(A one minute read)

As many of you know the New South Wales state government budget was recently announced . The good news for NSW residents in 18 suburbs and towns, is that they will be getting a new or upgraded hospital. They also announced major expenditure on roads, schools and social services. This was made possible through the capital raised by recent privatisations and the strength of the NSW economy which has been outperforming the other states for some time. 

The Nationals loss of the Orange by-election last year to the "Shooters, Fishing and Farmers Party" was a wake-up call for them and was a result of them neglecting the regional areas of the state for too long. They now realise that they have to connect with local regional areas again - or suffer the same fate in the 2019 State elections. True to form, politicians always have an agenda when they provide funding and regional NSW is the winner this time. And about time.

I recently wrote about the potential of regional NSW and this latest budget will give the regional areas a huge boost in employment, property prices and prosperity. The Nationals have pledged the following to regional NSW:

  • $199 million for regional hospitals;
  • $208 million of major road upgrades;
  • $35 million to build or upgrade ambulance stations;
  • $10,000 First Home Owners Grant (FHOG) for new and existing homes under $650,000;
  • Duty on crops and livestock insurance has been scrapped;
  • Cuts in transfer duty on property and insurance; and
  • School Halls and recreation facilities to receive a huge boost in funding.

Property prices in regional NSW are still affordable. We have three and four bedroom house and land packages from $300,000 available for our clients. The FHOG and the exclusion of transfer duty for first home buyers with a threshold of $650,000 qualifying for the FHOG, will result in price escalation in regional areas. Unfortunately the FHOG threshold will exclude most suburbs in Sydney and the new FHOG will have less impact on Sydney property prices.

For more information on the potential for regional NSW property click >>> REGNSW. To discover how you can benefit from the the FHOG and the properties and locations we have available, please call James Cagney on +61 416 137 645.

DISCLAIMER

This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
Please note that the information herein is of a general nature only and is not intended as specific advice for any particular person or entity.

This information was written and compiled by James Cagney.  The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Asset Finance Pty Ltd.

ACKNOWLEDGMENTS:

Thank you to the resources of Terry Ryder, Property Observer, The ABS, BIS Shrapnel, Michael Matusik, Property Monitors, Colliers, On the House, Corelogic, RP Data, Residex, SQM, Herron Todd White, NAB Residential Property Survey, Australian Bureau of Statistics, Peter Wargent, Port Phillip Publishing, Economy & Markets, Harry S. Dent and the many others for the material discussed above.


Author: James Cagney
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