Real Estate Institute of Australia (REIA) has welcomed the Leader of the Opposition’s announcement to provide 10,000 places within the First Home Loan Deposit Scheme (FHLDS) for regional Australians living in communities for 12 months or more.
REIA President, Mr Hayden Groves said housing affordability has declined over the December quarter of 2021, with the proportion of income required to meet loan repayments increasing to 37.0%.
“House prices have increased at the highest rates in two decades with a rise of 25.1% for the twelve months ending December 2021 with the regional rising at 26%.”
According to Mr Groves, the expansion of the scheme has been a priority under REIA’s Getting Real and he was pleased there is broad bi-partisan support for expansion of the program.
“The additional commitment of ongoing review of the FLHDS cap and criteria is sensible given current market conditions.
“Whilst this is welcomed and provides an advantage to regional Australian’s the realty is there is simply insufficient housing in regions and we’d love to see more investments from both sides of politics on a plan to increase supply of homes to both buy and rent,” he said.
“There are still more buyers than sellers in both cities and regions so our focus needs to be on a plan for increasing supply of established dwellings on the market as well as new builds.”
Mr Groves added investors should be confident to continue to invest in the pre-Election period with REIA securing bi-partisan commitment to retain negative gearing.
“Both Government and Opposition have promised to the Australian people and investors on the advice of REIA that negative gearing will continue be supported.”
“This is very different from the elections in 2016 and 2019 and we are glad that this certainty is being offered to our markets, our businesses, investors and tenants.
“The emerging lessons from negative gearing being removed are now becoming apparent in New Zealand so we are glad both parties support our investors; and the 27% of Australians that live in private rentals.”
Mr Groves said he was therefore pleased to hear that Shadow Treasurer Jim Chalmers also said if elected as Treasurer he would be willing to lead a national conversation on stamp duty reform.
“Without national leadership to phase out this antiquated tax, it will just be a promise of reform from the introduction of the GST in the Year 2000 that remains undelivered.
“Stamp duty reform could increase the supply of existing housing stock on the market anywhere from 5 – 40 per cent and would go a significant way to addressing supply side issues by not punishing ordinary Australians who want to get new jobs and move.”
Getting Real can be accessed here: https://reia.com.au/advocacy/getting-real/
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