Especially with property tax revisions in the 2013 Budget. The removal of tax refunds for vacant properties will take a huge chunk of potential income away from individual as well as corporate investors. They can no longer bank on getting money back on units they are holding on to whilst waiting for a good time to rent. Only those with extensive holding power will be able to hold on to their units and wait out the lulls in the real estate market.
Coupled with the increase in taxes for luxury properties, more and more resale private residential properties may be pushed back into the market, which unfortunately is dominated by new homes at the moment. This may intensify competition within a saturated market which may or may not see a price drop, depending on how strong a holding power the investors have.
Starting January 2014, the concession for such properties will cease and 2013 might be the year where the price battle between resale and new properties may be fought most intensely. From next January, higher tax rates will apply, 5 different tiers in fact, ranging from 8 to 16 per cent. If luxury properties were not seen to be doing well in the current market, will things take an even worse turn come 2014?
On the other hand, might overseas properties be more promising for investors and how do you get your hands on one? Which countries hold the most potential? Answers could often be best found at property seminars and talks, where you get to pick the brains of property experts and those who have had experience doing just that.