Purchasing an Investment Property


Road Runner Award winner – Clare Prentice


New Government Incentives

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A Bill has recently been introduced into Parliament which provides a one off $7000 financial incentive for New South Wales metropolitan home owners who sell their home and then purchase property in regional and rural centres. All applicants must have owned and occupied their metropolitan home as their principal place of residence with 12 months before the contract exchange date of their regional property. They must then occupy this regional residence for at least 12 continuous months commencing within 12 months after the completion date of the regional home purchase.

The metropolitan area means the local government areas of the Sydney metropolitan area, Blue Mountains, Hawkesbury, Gosford, Wyong, Wollondilly, Wollongong and Newcastle.

This bill is aimed at encouraging city residents to relocate to rural centres like Wagga Wagga, while also helping to boost the economy of these regional centres.

The Australian Government has also introduced a ban on bank exit fees for new loans from July 1st, 2011. This measure will help boost competition in the home loan market over time, by giving consumers greater freedom to get a better deal.

While this only affects new loans, some lenders have already removed exit fees on home loans while others are offering to pay your exit fees if you switch, so shop around.