Gazumping occurs when an agent accepts an offer you make to buy a property at an agreed price but the property is sold to a third party. This usually occurs when there is a higher offer.
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When buying or selling a property, the Conveyancing stage is one of the most crucial parts of the process. It is where all financial, administrative and legal works converge.
A Conveyancer is someone who is specifically qualified to work with the transfer of real estate. They give professional legal advice on title transfers and conduct official legal work to ensure the purchase/sale runs smoothly.
A Solicitor is known to be a more general legal practitioner who also have the specialist knowledge required to handle the transfer of property.
Conveyancers will have a stronger working knowledge of the rules and regulations in the State it is taking place in when it comes to Conveyancing because this is their specific area of expertise.
Conveyancers have an extensive amount of knowledge in this field it is rare that an issue will arise that a Conveyancer cannot solve.
The RBA’s decision to hold the cash rate at 0.25 per cent means interest rates on loans will remain stable, which will help many households and businesses manage their cash flow.
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As COVID-19 and social distancing measures continue to impact day-to-day life, the ability to complete conveyancing electronically has become more relevant than ever. A process that previously would take days or weeks can now be completed in minutes.
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The stringent government response to COVID-19 has undoubtedly placed the property market cycle at the cusp of another downswing. So far, property value declines have been fairly mild. Nationally, the May home value index results show that the dwelling market declined just 0.4% over the month, and preliminary indicators for June are showing the rate of decline has gathered some momentum through the month.
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While housing prices in most capital cities have declined a little since May, the rising equity market meant household wealth remained largely unchanged, despite the deep recession caused by the coronavirus pandemic. Figures released by CoreLogic have shown that Sydney has fallen by 0.8 per cent, while nationally, capitals have fallen by just 0.7 per cent throughout the COVID-19 crisis.
While the Reserve Bank noted in its latest meeting that conditions in the established housing market “remained mixed”, pointing to recent falls in dwelling values across Australia’s capital cities.
“Housing prices in some larger cities had declined in June, though we’re only a little below recent peaks in the case of Sydney and Melbourne,” the RBA noted.
“Housing prices in a number of smaller cities were broadly unchanged.” REA chief economist Nerida Conisbee said suburbs with prices over $1 million have remained stable during the coronavirus pandemic due to the strong momentum of the past year.
Fifteen suburbs across Sydney have crossed the $1 million median price barrier for the first time.
The suburbs, located predominantly in Hornsby Shire, The Hills and Sutherland Shire, saw their median house price surge in the 12 months to June, thanks to record-low interest rates fuelling the market.
Realestate.com.au data showed Bexley in the city’s south had the strongest growth of the new entrants, with prices growing $266,000 to $1.251 million. Neighbouring Bayside suburb Arncliffe also surpassed $1 million. However, Sydney’s property market is going backwards for the first time since early 2019, with new data revealing house prices have fallen 2 per cent over the past three months. Northmead was the sole Parramatta suburb to break $1 million, with the median house price now $1.01 million. Jannali, Menai and Yarrawarrah from Sutherland Shire along with Belmore and Picnic Point from the Canterbury-Bankstown area also saw house values surpass $1 million.
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At its August Board meeting, the RBA has left its policy settings unchanged, this includes holding the cash rate at 0.25%.
In a statement accompanying the decision, RBA Governor Philip Lowe said –
The global economy is experiencing a severe contraction as countries seek to contain the coronavirus. Even though the worst of this contraction has now passed, the outlook remains highly uncertain. The recovery is expected to be only gradual and its shape is dependent on containment of the virus.
The Bank's mid-March package of support for the Australian economy is working as expected. There is a very high level of liquidity in the Australian financial system and borrowing rates are at historical lows.
Government bond markets are functioning normally alongside a significant increase in issuance. The yield on 3-year Australian Government Securities (AGS) has been consistent with the target of around 25 basis points. The yield has, however, been a little higher than 25 basis points over recent weeks. Given this, tomorrow the Bank will purchase AGS in the secondary market to ensure that the yield on 3-year bonds remains consistent with the target.
The Australian economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s. As difficult as this is, the downturn is not as severe as earlier expected and a recovery is now underway in most of Australia. This recovery is, however, likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria having a major effect on the Victorian economy.
Given the uncertainties about the overall outlook, the Board considered a range of scenarios at its meeting. In the baseline scenario, output falls by 6 per cent over 2020 and then grows by 5 per cent over the following year. In this scenario, the unemployment rate rises to around 10 per cent later in 2020 due to further job losses in Victoria and more people elsewhere in Australia looking for jobs. Over the following couple of years, the unemployment rate is expected to decline gradually to around 7 per cent.
The Board is committed to do what it can to support jobs, incomes and businesses in Australia. Its actions are keeping funding costs low and assisting with the supply of credit to households and businesses. This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band.
To read the full statement, go to https://www.rba.gov.au/media-
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Yesterday, the NSW Government announced updates to stamp duty thresholds which is set to boost first home buyer activity and housing construction across NSW - all part of the Government’s COVID-19 Recovery Plan.
Wonder how much stamp duty you'll pay on a property?
If you are first time buyer and/or buying a house as a primary residence you might be eligible for a concession on the stamp duty. Generally, if you're a foreign resident then you need to pay extra 8%.