Seller market expected to benefit from the remainder of 2016
Thinking of selling? What can the remainder of the year do for you?
The remainder of 2016 is set to be significantly beneficial for the sellers market, as strong demand continues and vacancy rates for commercial office within the Sydney CBD continue to tighten. In July Sydney CBD total office market recorded a vacancy rate of 5.6%, a fall from 6.3% in January 2016.
Due to the new implementation of a series of regulations on the 1st of July 2016 and steadily high demand for commercial property, there are promising signs that now is a significant time to sell. The sales team at CI Australia have generated what they believe to be the top five benefits for sellers now from the rest of the year, to help you ensure you are maximising the return you receive on your investment.
Benefit 1 – Exempt from GST:
- Sydney is currently experiencing significantly low vacancy rates, resulting in most investment properties being fully occupied
- If a property is fully leased and the current owners want to sell the investment then the sale would be exempt from paying GST allowing an easier and transparent transaction. This also applies if the property is partially leased, although the vacant part has to be either an active lease listing or undergoing repairs and maintenance
Benefit 2 – Tax deductible expenses:
- Costs such as interest, repairs and maintenance are generally tax deductible. Owner and buyer are also entitled to claim tax on all costs in regard to the buying and selling transaction of the property
- It is a win-win solution for both sellers and purchasers. As sellers are reimbursed for such cost, it will result in more effective income that can ultimately be invested elsewhere
Benefit 3 - Tax cut for small businesses:
- From the 1st of July 2016, small businesses will benefit from the reduction of tax rate to 27.5%. The income threshold for small businesses was increased from $2 million prior to 1 July 2016 to $10 million
- With a reduction in tax cost for these businesses it will allow them to invest in their growth, and therefore be more willing to seek other properties that will reflect the companies growing capabilities
Benefit 4 – Government incentives for businesses:
- As Australian economy is moving away from the mining industry to a broader, diversified service industries, the Government currently provides incentives and initiatives to encourage more employment and business growth within these service industries
- The support from the Government assists these companies to grow rapidly and advance their competitiveness globally. As both smaller and larger companies continue to expand and have more employees, they may come to the market to seek and buy appropriate properties that will service their companies future requirements
Benefit 5 - Mortgage duty abolished:
- From the 1st of July 2016 the duty paid on a mortgage has been abolished, ultimately allowing investors to look for property without needing to take into consideration this extra cost associated with the acquisition
- Potential buyers are now able to increase the price they are willing to invest into a property, which in turn is beneficial for sellers
If you are ready to sell your property and take advantage of all the benefits the remainder of 2016 has to offer, ensure you have an effective and efficient agency working to ensure you not only sell your property but also achieve the best possible return. Our sales team at CI Australia has extensive knowledge on the property market and has a successful track record in selling properties as well as exceeding our clients’ expectations. Call our Sydney Sales team (02) 8238 0000 or North Sydney Sales team (02) 9925 0000 to get specialised advice about your property today!