Why you Should Invest in Property During this Recession

Strong Rental Market

The demand for rental properties increases during a recession and due to the limited availability to finance a home and those who are worried about rising interest rates - many individuals opt to rent in place of investing. This demand gives opportunity to property owners to increase their rent accordingly to the market to yield higher profit and secure stable rent income.

Potential for Capital Growth

Finding and investing in a property with potential for capital growth can help you long term after the market recovers. Although there may be some short-term declines, a high risk high reward mindset must be applied when considering your long term financial goals.

Government Initiatives

Lower the cost entry into the property market by taking advantage of government initiatives introduced during economic downturn. In a way to encourage home buying, the government implements a variety of initiatives to boost the economy.

A few New South Wales Government Initiatives include:

• First Home Owner's Grant (New Homes)
• You may be eligible for a $10,000 grant if your first home is newly built, purchased off the plan or substantially renovated.
• Learn more here: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/new-homes
• First Home Buyer Assistance Scheme
• After the 1st July, 2023
• Exemption of transfer/stamp duty for purchases of new and existing homes up to $800,000 and a concessional rate of duty for homes up to $1,000,000
• Learn more here: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme
• Shared Equity Home Buyer Helper
• NSW Government will contribute a proportion of the purchase price in exchange for an equivalent interest in the property
• Learn more here: https://www.nsw.gov.au/housing-and-construction/shared-equity