Forget any idea that the meek shall inherit the earth. In property, fortune rewards those who are well-informed and can recognise opportunity ahead of the pack.
The housing affordability measures announced by NSW Premier Gladys Berejiklian last week contain plenty of information that every real estate agent needs to know to help first home buyers make decisions about their financial capacity to borrow and buy.
But there is much more within the policy that is relevant to every property owner and this relates to government efforts to boost supply.
The government has identified 15 priority growth areas where they are committed to supporting faster and denser housing through the planning process and infrastructure investment.
Infrastructure, is the magic word that can magnify the value of property, making it a more attractive proposition to purchase or signifying a potential windfall from the vendor side of the equation.
As the people in the middle of the transaction, it is vital that real estate agents know what’s happening now and in the future. Suburbs to the north, south, east and west are primed for enormous change, which will impact the value of homes both positively and negatively.
It’s not hard to be informed. The NSW Planning website has a plethora of information easily accessible and for those who really want to be in the know, the department is holding information evenings about the 15 new priority growth precincts that it has identified*. You can find the dates and locations here http://www.planning.nsw.gov.au/News/2017/New-priority-precincts
Value opportunity is not limited to the growth areas though. With an increasing focus on providing more housing in established neighbourhoods, changes to zoning, building heights, floor space ratios and permitted uses means that many thousands of house and land owners are sitting on potential redevelopment sites.
The government’s intent is to make it easier to put two houses on a lot that currently has only one house. That knowledge may well impact on a potential vendor’s decision to sell or not and their price expectation.
The premier set an ambitious housing target with the Fair Go for First Home Buyers package**, declaring a goal of 61,000 dwelling completions a year up to 2021. While some of this target will be met by rezoning and high density development the intent is to also boost medium density housing, particularly in areas located close to established transport.
Not everybody is going to warm to the prospect of garden suburbs becoming development zones but that is not the issue. It is the role of the real estate industry to provide clients and customers with expert and up-to-date advice. And that means that they need to be across the many different pieces of legislation and changes in government approach that will affect buying and selling decisions.
It’s just another aspect of what it means to be a full service agency in a period of enormous change.
* Priority Precincts
Precincts identified for growth and revitalisation to fast-track delivery of new homes;
Belmore and Lakemba
Burwood, Strathfield and Homebush
Campsie and Canterbury
Cherrybrook
Frenchs Forest
Glenfield
Leppington Town Centre
Riverwood
Schofields Town Centre
Seven Hills and Wentworthville
St Leonards and Crows Nest
Telopea
Turrella and Bardwell Park
Westmead
** Fair Go For First Home Buyers Package
Abolish stamp duty on all homes up to $650,000 (save up to $24,740 on a $650,000 home)
Give stamp duty relief for homes up to $800,000
Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
Abolish insurance duty on lenders’ mortgage insurance
Ensure foreign investors pay higher duties and land taxes
No longer allow investors to defer paying stamp duty on off-the-plan purchases