Victoria Outlook Changing Market Conditions Interest rates are expected to increase before the end of 2011, by between 0.25 and 0.5 per cent, but respondents were fairly evenly divided with 57.1 per cent of Victorian respondents thinking they will increase and 42.8 per cent that they would decrease. The Governmentâ€™s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values. However, more customers will seek energy efficient features when looking to buy a new home, due to rising household energy costs and the challenge of maintaining a healthy home budget. Homeowners will also be more likely to take action to begin correcting the least energy efficient aspects of their property. A carbon tax will also potentially decrease demand for homes that are not currently adapted for energy efficiency â€“ although there are not enough energy efficient homes in the state to make that much difference to the market overall. The majority of Victorian members believe stamp duty should be abolished altogether, but not if it is replaced by some other form of tax such as a broad-based land tax or death duties. It was considered that any talk of abolishing negative gearing should cease immediately. Lowering immigration levels would certainly impact on the Victorian property market â€“ however, there could be both positive and negative outcomes. For real estate prices, it was considered that immigration should be increased, but for livability, they should be decreased as the current infrastructure is probably unable to support more people in the state.
24 First National Real Estate 2011 Property Market Outlook
First National Real Estate Mid Year Property Outlook 2011 - Tweed City NSW