I may have whinged about the forecasted rain last week, but after a rather dreary ANZAC Day, the sun came out to deliver a splendid autumn day. The weather could have been more perfect to hold the first open homes for our most recent listings, and plenty of buyers were out and about enjoying the sunshine while browsing for their new or next home!
The real estate industry gets a lot of shade for unsolicited communication, but a certain political party has really put things in to perspective over the past few weeks. If the incessant text messages – without an opt-out function mind you* – blowing up your phone weren’t enough of an obvious reminder, Aussies are heading to the polls this weekend to elect the members of the Parliament of Australia.
*Believe it or not, these relentless texts are permitted, as political parties are not considered commercial entities and therefore are exempt from the Spam Act of 2003. All of a sudden, real estate agents seem a lot less annoying!
I’ll spare you the run down on the upcoming federal elections – the media are already all over that, but I will give you my two cents on the ripple effect it could have on the property market. Both major parties are campaigning hard with housing policies that aim to help Australians get on the property ladder, address the housing supply shortage and alleviate the cost of living crisis.
From the Coalition’s proposed tax-offsets and super withdrawals to Labour’s ongoing deposit and equity support, the measures being put forward offer a range of opportunities to improve access to property ownership.
These incentives may be helpful, but history has proven that when supply remains tight and stimulus-driven demand rises while the population continues to grow, prices tend to climb quickly. If interest rates fall in the weeks following the election, the effect of the policies coming into play could be tenfold!
So what exactly are the major parties proposing in this cost-of-living centric election which, for the first time, will see Gen Z and Millennials (adults between the ages of 18 and 44 years old) outnumber BabyBoomers and Gen X at the voting stations?
(THE COALITION SUGGESTS)
– Allowing all first home buyers to withdraw 40 per cent of their superannuation, up to $50,000, to use as a home deposit, which would be repaid when the home sells
– A mortgage tax break for all first home buyers of new properties, enabling them to claim the interest paid on the first $650,000 of a mortgage as a tax deduction
– Maintaining the Home Guarantee Scheme and increasing current caps
– Freeze any further changes to the National Construction Code for 10 years and reduce red tape on new projects
– Clear the backlog of approvals holding up development of tens of thousands of homes
(A RE-ELECTED LABOUR PLANS TO)
– Enable every Australian (that’s right, no income caps) to buy their first home with a 5 per cent deposit without paying lender’s mortgage insurance through the First Home Guarantee
– Commit another $800m to lift property price caps and income caps on the Help to Buy scheme, its shared equity scheme, in which the government takes partial ownership of a property to reduce the upfront cost for the buyer
– Expand its Homes for Australia plan to build up to 100,000 homes for sale only to first home buyers
Please keep in mind that while I can give you the general gist of our political parties’ initiatives, this information is not to be taken as an expression of my political views or as financial advice. For the latter, reaching out to a mortgage broker is the best way to ensure you or a family member buying their first home are making the most of the benefits available!
I am however qualified and thrilled to share with you an incredible opportunity that we will be launching early next week. 306/50 Macquarie Street is a split-level home in the Saratoga Woolstore spanning 109 SQM. Full-size, south-facing glass windows fill the space with natural light to create an exquisite home – come see for yourself this Saturday at 8.45am!
After ducking next door to Kin for a mandatory Teneriffe morning activity, you’ll be ready to take on the rest of the day with us. We’ll be out until about 1.30pm, and as always, you can find the full run sheet of our day by scrolling to the bottom of our home page.
There’s no chance I’ll make it to the polls in time this Saturday, and if you plan on joining us for a big day of inspections, I highly recommend you cast your ballot well in advance too!
Talk soon,
Ben
