What New Taxes and Schemes Should The Government Bring In This Year?
What new taxes and schemes should the government bring in this year in order to get the property market booming?
According to Nathan Birch, we will see further stimulus introduced in addition to the recent First Home Loan Deposit Scheme rolled out by the National Housing Finance and Investment Corporation this financial year.
Which means prices are about to get a whole lot pricier. But will this come at the expense of the dollar?
This is how Nathan would get the property market booming.
Recent stimulus looks set to continue.
At the moment, first home buyers in Australia are pretty well set up. Not only are they eligible for stamp duty concessions and exemptions, they can also access first home buyers’ grants, subject to the terms and conditions set out by each state and territory.
In the last Federal Budget, the government introduced its First Home Loan Deposit Scheme, in which it would effectively foot 75% of the deposits of up to 10,000 borrowers.
At the dawn of the next financial year, another 10,000 spots will be available for first home buyers who only have 5% of the deposit requirement needed.
According to Nathan, this will stimulate the property market.
But, the stimulus won’t stop there, he says.
“I think we could see a hell of a lot more stimulus packages come in.” “I think that it will become easier to get loans and to get equity out this year.” “I also think that we will see interest rates come down.”
He says, more liquidity will flow through the financial markets, which, in addition to the other stimulus introduced, will push up property prices.
“In this market, undoubtedly, property prices are going to be rising,” he says.
“This is an opportunity for you to be able to go out there and pick up properties – and as they get inflated away into oblivion, you can make money out of that as well.”
Anyone for some bread and butter?
Nathan really likes bread and butter properties. This is because the low end of the market is where stimulus really gets to work. First home buyers find these markets much more affordable – and an increase in first home buyers is likely to create pent up demand.
This in turn will bring prices up, which may have a trickle-down effect (trickle-up effect?) on higher value markets as well.
Time to turn off the TV.
In order to prepare, Nathan says we should start following what is happening.
“Turn your TV off,” he says.
“Look at the market. Understand the market.”
He says, we should understand how the monetary system works and look at how the wealthy are manipulating the markets to their advantage. Then, it is a matter of asking ourselves how we too can profit from the system.
Be wise when you buy.
Nathan also recommends minimising risk by purchasing properties that are below market value, with a good upside for growth and a strong cashflow.
He cautions against listening to spruikers and so-called property gurus – who tend to run rampant when the market picks up speed.
With more liquidity coming into the global economy, the risk of hyperinflation is ever looming – prompting Nathan to make a stark prediction.
“We’ll see the dollar get destroyed in this next decade – and there is no way of stopping it.”
He says, in the current economic environment, people will start to feel like they are becoming richer thanks to rising property and share prices. This increased confidence will start the next phase of the money bubble, and hyperinflation will kick in big time.
What then? Those leveraged with income producing assets will be able to pay off their debt in a shorter amount of time, while those with old savings will get priced out of the market.
How would you get the property market booming?