Hous­ing ig­nored in Fed­eral Bud­get

The Riverine Herald - Local Real Estate - - Lo­cal Real Es­tate -

Real Es­tate In­sti­tute of Aus­tralia (REIA) pres­i­dent David Airey said that al­though Tues­day’s Fed­eral Bud­get ig­nored hous­ing af­ford­abil­ity, it was not the hor­ror Bud­get that was ex­pected. ‘‘The Bud­get is a ‘mixed bag’, with both pos­i­tive and neg­a­tive im­pli­ca­tions for the real es­tate pro­fes­sion and the hous­ing mar­ket,’’ he said. On a pos­i­tive note, the much-spec­u­lated changes to neg­a­tive gear­ing ar­range­ments that REIA lob­bied against had been re­jected. Of great dis­ap­point­ment was that there were no mea­sures in the Bud­get to as­sist those that REIA re­ferred to as be­ing an en­dan­gered species — first-home buy­ers. First-home buy­ers cur­rently rep­re­sent about 15 per cent of buy­ers in the hous­ing mar­ket, com­pared to 30 per cent in Oc­to­ber 2009. ‘‘This is a mar­ket segment that des­per­ately needs as­sis­tance to fund home pur­chase. REIA rec­om­mended in its Pre-Bud­get sub­mis­sion that the gov­ern­ment con­duct a re­view of the First-Home Owner Grant and con­sider pro­vid­ing first home buy­ers ac­cess to su­per­an­nu­a­tion for the pur­chase of a home,’’ Mr Airey said. ‘‘This Bud­get will do lit­tle to stave off ex­pected in­creases in in­ter­est rates, a con­cern, given the crit­i­cal state of af­ford­abil­ity. ‘‘It is dis­ap­point­ing that the Gov­ern­ment has not re­alised the value of im­ple­ment­ing longterm so­lu­tions to ad­dress hous­ing af­ford­abil­ity. We need to look at prac­ti­cal mea­sures to give first-home buy­ers the op­por­tu­nity to re­alise the dream of own­ing their own home,’’ he said.

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