SA Real Estate

Foreign Resident Capital Gains Withholding Clearance Certificate – Do I Need One?

What is a Foreign Resident Capital Gains Withholding Clearance Certificate?

It is a clearance certificate issued by the Australian Tax Office to a Vendor when selling a property to ensure Foreign Resident capital gains withholding tax is not withheld on settlement for Australian Residents.

Do I need to apply for a Foreign Resident Capital Gains Withholding Clearance Certificate?

Yes – every owner must apply for a clearance certificate when selling a property in Australia. If you do not obtain a Foreign Resident Capital Gains Withholding Clearance Certificate the ATO will withhold 15% of the market value on settlement of the property.

How do you apply for a Foreign Resident Capital Gains Withholding Clearance Certificate?

It is free to apply and easy to do via the ATO website.

Why did the Australian Government introduce the Foreign Resident Capital Gains Withholding Tax Clearance Certificate?

The ATO introduced the clearance certificate to ensure the Australian Government captures capital gains tax on the sale of Australian property by Foreign residents.

At SA Listings we assist all our clients with their Foreign Resident Capital Gains Withholding Clearance Certificate applications. If you are interested in finding out more about SA Listings and how we operate differently to your traditional Real Estate Agency visit www.salistings.com.au

Justine Thomson

SA Property Market – June 2023

South Australia continues to report positive property statistics.

South Australia continues to report positive property statistics. The recent CoreLogic June 2023 Monthly Housing Chart Pack statistics have been released. Overall, Adelaide dwelling values rose by 0.9% in May 23, quarterly dwelling values increased by 1.1% and over the past year dwelling values increased by 0.4%.

Supply is at an all-time low, with sale volumes -9.7% lower year on year for Adelaide, and -14.9% in regional SA.

The lack of supply of quality stock is certainly continuing to prop up property sale prices within SA and time on market is less than one month.

Overall, despite continuing interest rate rises, a very positive picture!

If you are considering selling in SA, do not hold back because of Winter or the current economic outlook. Total listings within Adelaide is -24.8% down on this time last year. If you have been thinking of selling, now is a great time, with demand for quality properties in South Australia greater than supply.

To find out what your property is worth, please do not hesitate to contact us at www.salistings.com.au

Justine Thomson

Source: CoreLogic – Monthly Housing Chart Pack – June 2023

South Australian Property Market – Where to from here?

South Australian Property Market continues record growth

The property sector for 2021 to date in Australia is at record highs. Economically it is interesting times indeed. With border closures, lockdowns and uncertainty driving job prospects, one would anticipate property prices would slump. However, the combination of low interest rates, low stock levels and the love of Australian soil has seen the property market boom. What does this mean for SA?

CoreLogic data released on Friday shows housing values increased by 1.5% in September, bringing the total gain this year to 17.6%. Nationally property prices have rose at the fastest rate since 1989 with South Australia joining the ride with an annual increase of 19.1%, indicating a strong sellers’ market.

Recent statistics report Adelaide’s median property value at $529,376, compare this to Hobart with a median value of $659,622 and it suggests Adelaide has some catching up to do. The Federal Government is rightfully concerned about housing affordability and the rising debt of Australian households and this is likely to lead to Government policy intervention to quell the property market. If Government intervenes we may see prices stabilise, so if you are considering selling, now may be the perfect time.

If you are in South Australia and would like a current market appraisal for your property, SA Listings would be happy to assist. We offer a fixed fee in conjunction with a strong skill set for the sale of one of your biggest assets. SA Listings staff include licensed Land Agents with qualifications in Conveyancing, Property Management, Law and Accounting. It’s a smarter way to go. To find out more visit www.salistings.com.au

Justine Thomson

Source: CoreLogic – 30 September 2021

What is a Form 1?

A Form 1 statement is a legal document providing important information about a property. If you are selling a residential property in South Australia you are required by law to serve a Form 1 document to the prospective purchaser. The Form 1 is usually prepared by your Agent or Conveyancer and signed by the Vendor prior to advertising the property for sale but it can also be prepared and served after the contract is signed.

What is included in a Form 1?

Whilst not an exhaustive list the Form 1 includes but is not limited to:

Property Title
Particulars regarding any mortgage
Particulars regarding any easements
Council rates, Water Rates, Emergency Services Levy and Land Tax details
Zoning information
Council approvals for building works

The Form 1 may not include information about encroachments, condition of the property, whether building regulations are complied with or if the survey of the land is accurate. A prospective purchaser is responsible for finding out anything that is not covered in the Form 1 and needs to do their due diligence on the property they are purchasing.

What does the Form 1 have to do with cooling off rights?

If you buy a property other than at auction, the purchaser has a cooling off period. The cooling off period expires at the end of the second clear business day after the contract was made if the purchaser received the Form 1 prior to making the contract or after the Form 1 was served on you, if you received the Form 1 after making the contract. The Vendor does not have the right to cool off, only the purchaser. The Form 1 details your right to cool off and how you must go about serving the cooling-off notice if you change your mind.

What can happen if the Form 1 is not accurate?

The Form 1 must be factually accurate and complete. If it is incorrect or there is insufficient information, the purchaser may be able to withdraw from the sale or take legal action. It is a very important document and you need to be sure your Agent or Conveyancer understands the law when it comes to preparing a Form 1. A good Agent or Conveyancer is critical to the sale process of one of your biggest assets – your home! So, take care to choose your Agent and Conveyancer wisely and check their qualifications.

How much does a Form 1 cost?

The cost can vary depending on the property and who prepares the Form 1 for you. Government searches required to be ordered will vary with the type of property you are selling. For example, if the property you are selling is part of a strata group managed by a body corporate, you will require body corporate searches and the body corporate manager will charge a fee for this. The nature of the property determines the number of Government searches required to be ordered and this will impact the cost. The other cost involved is the preparation of the actual Form 1 document, some Agents will prepare this document and include this as part of their fee for service, others outsource to a Conveyancer for preparation or will request the Vendor to arrange with their chosen Conveyancer. The cost for a Form 1 with Government searches is significant; however, you will require this legal document to enable you to sell your home. For the 2021 Financial Year the price for a Torrens Title residential property would be in the vicinity of $750 to $850 including GST and for a Community/Strata Title $900 to $1,000 including GST. Please note, this cost is just an indicator, as discussed, it will vary depending on the number of Government searches required and what your provider charges for the service.

What is important is your Agent advises you early in the appraisal process that you will require this document to sell your home and there is an additional expense if it is not included in the Agent fee.

Changes to the Form 1

From 1 July 2021 the South Australian Government has updated the Form 1 to include additional disclosure requirements and deleted some items. It is important your Agent or Conveyancer is across these to ensure an accurate Form 1 is served on the purchaser after 1 July 2021. The last thing you would want as a Vendor is legal action from the purchaser for a faulty Form 1!

Ask your Agent to explain the Form 1 document to you, if they cannot explain the Form 1 and all the information in it, then is this the right Agent for you?

Why use an SA Listings agent?

SA Listings offers a fixed agent fee for service, with no hidden extras. You will be advised of the Form 1 costs prior to listing a property for sale. SA Listings understands the Form 1 disclosure requirements and will ensure the document is explained to you and any potential purchasers of your property. The team are licensed land agents, qualified lawyers and conveyancers, providing a strong skill set with the sale of one of your biggest assets – your home! To find out more visit SA Listings.

Justine Thomson

National Property Statistics

Adelaide property values have recorded a modest increase of 0.1% during the month of November, according to the latest CoreLogic Home Value Index released today, Monday December 3, 2018. This small increase contributes to an annual return of 1.4%. While this small increase may not be music to the ears of property investors and owners, it certainly is sounding better than Sydney and Melbourne, both continuing their pull back with -1.4% and -1.0% respectively.

Source: Corelogic.com.au

As always, please be in contact should you need assistance with any property matter.

If interested in an individual property appraisal or statistics on your suburb or local area, please be in contact through SA Listings.

Justine

Land Title in South Australia

When buying property in South Australia, be it purchasing land, a house, investment property or even an apartment, you are purchasing a “title” specific to the parcel of land or property which determines the type of ownership. Essentially, the main difference between the types of “titles” is whether or not the land is “shared” or owned in “common” with other owners. There are two main titles in South Australia, Torrens and community.

Torrens Title. A South Australian invention, Torrens title is a system which records and registers land ownership. Your name is “registered” on the Torrens title register when the Certificate of Title is lodged at the Lands Titles Office. You then become the owner of the property to the exclusion of all others.

This means that you, as the property owner, are responsible for everything within and related to, your property. You are wholly responsible for council rates, services of water, sewerage, storm water and any land tax applicable on the land. This title is particularly relevant to free-standing homes and some townhouses.

Community Title. This an updated version of the older strata title, meaning that you own your block of land (or apartment) but you share aspects as a “community” i.e. responsibility of common areas is shared with other owners. While strata title is still relevant for existing titles, all new common allotments are now community titled.

A property such as a villa, townhouse or unit is often purchased under community title. When you buy one of these properties, there are ‘common areas’ (driveways, gardens, entryways and so on) used by all of the people living in the development or apartment block. These common areas have to be maintained by all of the unit owners collectively, through a community corporation, because they are shared. The individual owner is responsible for upkeep of the inside of their land and property, but they must share the expense of maintaining common areas.

Your lot entitlement (in simple terms the proportional size of your property compared to the entire property) determines your share you contribute to insurance and other fees charged by the corporation. All community schemes have by-laws that include provision for the administration, management and regulation of the use and enjoyment of the common property. The by-laws are an extremely important aspect of community title new purchasers must be aware of – how much are the fees and what rules exist that you must abide by. For example, many community corporations restrict pets to certain sizes or numbers.

Moiety Title. Now rare and sometimes referred to as a cross lease, moiety ownership of a property comes from being the registered owner of a share of the land the property sits on. The owner then leases the right to occupy their property, along with the right to use common areas, from the other unit owners. It is now common for moiety title to be transferred to either community or Torrens title.

Should you have any questions regarding the title of your land or apartment, or are considering purchasing a property and are unsure of the responsibilities that come with the title, please be in contact at info@salistings.com.au.

Justine

National Property Statistics

Australia’s housing market correction continued through August with the CoreLogic Report National Home Value Index tracking 0.3% lower over the month. Since peaking in September last year, values have been consistently tracking lower, down a cumulative 2.2% through to the end of August 2018.

The good news? Adelaide! As we have continually said, slow and steady wins the race, and while 1.0% annual growth does not seems spectacular, it points to value and affordability in South Australia. This coupled with renewed business confidence in the State is great news for both home owners and those looking to get into the market.

Source: Corelogic.com.au

As always, please be in contact should you need assistance with any property matter.

If interested in an individual property appraisal or statistics on your suburb or local area, please email info@salistings.com.au.

Justine

1 July Property Legislation Update

Well we are a few weeks into the new financial year and, as is usual, property owners and investors should be aware of various changes to property rules from the ATO.

Australia wide, the greatest and possibly the one with the biggest impact on investors, new home buyers and developers is the requirement for purchasers of new residential premises or potential residential land to withhold an amount of the contract price and pay this directly to the ATO at settlement.

Essentially, this means for affected property transactions, purchasers will need to:

split the amount of GST from the total purchase price,
pay the GST component directly to the ATO by a disbursement at settlement, and
pay the GST exclusive purchase price to the property developer (vendor).

The new rule imposes requirements onto the vendor/developer as well. Developers need to give written notification to the purchasers when they need to withhold.

The actual liability for the GST remains with the property developer, however there are no changes to how property developers lodge their business activity statements.

Should you be contemplating purchasing new residential property or potential residential land there are a number of forms that need to be completed by the purchaser or their representative (a conveyancer or solicitor) after contract signing and prior to settlement. Speak to your agent or conveyancer to ensure you comply with the new requirements or visit https://bit.ly/2tLbVri for more information from the ATO.

1 July 2018 also marks the date from which first home buyers can access super contributions for the purpose of buying their first home. Since 1 July 2017 eligible Australians have been able to make voluntary super contributions of up to $15,000 a year, to a maximum of $30,000 over more than one year, to their superannuation account to help purchase their first home. Since 1 July 2018, eligible Australians are able to apply to their super funds to release these contributions (and earnings) for the purposes of purchasing a first home.

Finally, another change on 1 July 2018: Australians aged 65 years + can make a non-concessional (after-tax) contribution into their super account of up to $300,000 from the sale proceeds of their family home (main residence) if they have owned the property for at least 10 years. Couples will be able to contribute up to $300,000 each, giving a total contribution of up to $600,000.

Again, please visit the ATO website https://bit.ly/2udPt9Jor discuss with your financial advisor for detailed information related to your particular circumstances.

Justine Thomson

Exceptional Sale Results without Excessive Commissions

The results are in! SA Listings has selected our last 18 recent sales to statistically prove you get the same results, if not better from a fixed fee Agent compared to a traditional commission based Agent. The results also prove that brand does not matter when selling your home. SA Listings, a relatively new player in the Adelaide real estate market has successfully sold the last 18 properties with an average of 23 days on market, achieving an average of full Vendors asking price and savings in excess of $110,000 in Agent fees to boot!

SA LISTINGS – CLIENT RESULTS AND AGENT FEE SAVINGS
Property Address	% of Asking Price	Days on Market	Agent Fee Saved*
92 Folland Ave Northgate	105.24%	4	$7,312
72 Rapid Ave Lightsview	102.19%	7	$9,400
1/91 Myrtle St Prospect	100.00%	31	$4,590
11 Allen Ave Brooklyn Park	105.00%	11	$7,310
4 Paddington Ave Northgate	108.00%	9	$7,662
109/220 Greenhill Rd Eastwood	98.33%	49	$6,980
140C North East Rd Walkerville	99.11%	34	$6,320
140B North East Rd Walkerville	98.23%	31	$6,210
14 Epsilon Crt Woodcroft	100.00%	16	$3,250
14 Rapid Ave Lightsview	100.00%	52	$1,920
8 Welsh Rd Lightsview	108.70%	5	$7,750
14 Holmeswood Crt Para Hills West	98.00%	46	$3,680
74 Rapid Ave Lightsview	100.00%	1	$7,360
10 Rozells Ave Lightsview	100.00%	7	$7,150
2 Rivergum Cls Walkey Heights	97.00%	20	$6,860
13 Welsh Rd Lightsview	97.22%	21	$9,400
19 Rapid Ave Lightsview	100.00%	26	$6,540
21 Rapid Ave Lightsview	100.00%	43	$5,000
	Average Ask Price	Average Days on Market	Total Agent Fee Savings
	100.95%	23	$114,694
*Savings based on traditional Agent Commission in SA of 2.2% inclusive of GST

The savings in Agent fees is conservative, as it does not take into account significant savings achieved by our clients in marketing fees. Several of the properties listed above had no marketing fees at all as they were successfully matched to purchasers on the SA Listings buyer database. We have in fact, been told by our clients of well known brand name Agents charging additional fees of up to $2,000 for use of pre-market listing techniques, whereby, your property is listed on their website and database for viewing only by their registered subscribers, prior to listing to the general public. This is astounding! One would expect the Agent commission to cover the cost of the Agent actually matching the registered subscribers on their database to your property. Is that not their job? At SA Listings, we database match and contact all relevant parties we believe would be interested in your property. This service is incorporated in the fixed fee package at no additional cost to you, we believe our job as your Agent is to sell the property for the very best price at an affordable cost to you – without fee gouging!

Also as a consumer be aware, there are some new Agencies providing a low fixed fee but the package does not incorporate a full agent service. Please read the fine print and ask questions of the Agency selling you the packages.

Remember, SA Listings provides a full agent service for an affordable fee with the highest service from listing to settlement, to find out more visit www.salistings.com.au

Justine Thomson

National Property Statistics

12 MONTH MEDIAN GROWTH – SEPTEMBER 2017

	HOUSES	UNITS
ADELAIDE	2.5%	4.1%
MELBOURNE	11.5%	3.5%
SYDNEY	7.8%	4.3%
BRISBANE	3.3%	-2.1%
CANBERRA	7.7%	2.9%
DARWIN	-9.1%	-8.7%
PERTH	-2.4%	-3.6%
HOBART	6.8%	2.4%

12 MONTH MEDIAN PRICES – SEPTEMBER 2017

	HOUSES	UNITS
ADELAIDE	$445,000	$375,000
MELBOURNE	$702,000	$520,000
SYDNEY	$940,000	$715,000
BRISBANE	$530,000	$410,000
CANBERRA	$655,000	$430,000
DARWIN	$492,000	$390,000
PERTH	$500,000	$400,000
HOBART	$390,000	$290,000

If interested in suburb statistics for your local area in South Australia, please email info@salistings.com.au

Justine Thomson