A clear perspective for First Home Buyers

In LAST WEEK'S UPDATE, I took a look at the impact that the Budget may have on the property investment market. So I thought it was only fair to look at what it all means for first home buyers, particularly when the Federal Government has been talking about how this document will make things easier for those wanting to get a foothold in property ownership.

So, let’s be clear. By encouraging investors to focus more on brand new housing rather than established housing, this should reduce the competition for existing property and therefore reduce prices a little in theory. Of course, if you’re a first home buyer who wanted to buy or build a new home, it’s not good news at all as competition (and therefore prices) are likely to increase!

The other side of the equation is that if an increased number of investors decide to hold back on purchasing a property due to the tax changes, the already tight supply of rental properties will get tighter, pushing median rents higher. Thus those first home buyers who are renting will find it even harder to save a deposit in order to get into the market.

So if we really want to make it easier for market entrants to take that leap, can I suggest that we solve the bigger issues like increasing housing supply, speeding up planning approvals, lowering construction costs, improving the infrastructure around Greenfields sites and (of course) taking a fresh approach to inefficient taxes like stamp duty.

Imagine what might happen then?!

Remember, if you need advice or assistance on any property-related matter, the team at Barry Plant Thomastown is always happy to help. You can call us anytime on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown