According to the Real Estate Institute of Australia (REIA), a potential policy encouraging first-time home buyers to seek new homes to stimulate the residential construction sector may not be the best way to support the economy. Economy as a whole. ]
Although the construction of new homes has been essential support to Australia's economic growth over the past three years, limiting subsidies and grants to purchase new homes could have a "harmful effect" on the choice of buyers and market activity. This, in turn, could dilute the supposed economic impact of such a stimulus, said Adrian Kelly, president of REIA.
"Limiting assistance to first-time homebuyers only to new homes could lead to sub-optimal results in the use of existing properties and infrastructure," he said.
Kelly said that less than 20% of first-time home buyers prefer to buy newly built homes. He believes that the introduction of a subsidy that limits their choice would only hamper any potential activity in the housing market.
"While the participation of first-time home buyers has improved in the past year, the current level is well below levels of 20 years ago. the purchase of new homes will limit this recovery, "he said.
Industry groups are urging the federal government to introduce economic stimulus packages to stimulate the construction sector. One of the suggestions that has received a lot of attention lately is the Property Council of Australia's proposal to give first-time homebuyers $ 50,000 to purchase. new homes. The builders also applied for a similar cash grant which would provide $ 40,000 to first-time home buyers.
While the goal is to stimulate the economy and create jobs, Kelly said limiting aid to first-time homebuyers could potentially reduce the economy. # 39; employment in the real estate sector. He said that many agents were already reporting a 50% reduction in lists and inquiries from potential sellers.
"It looks like it probably won't change for a while and will cause employment in the industry to drop when JobKeeper ceases," he said. "This would exacerbate the impact on the agents who managed the spinoffs from the tenants losing their jobs and negotiating results that kept families at the height of the pandemic."
Kelly believes that allowing first-time homebuyers to search for homes established during a state grant application would benefit the construction industry more , as this usually leads sellers to look for larger, newer properties.
"In these cases, the multiplier and the effects on employment are probably greater than when a first-time home buyer buys a new house, because the size and cost of the construction of homes purchased by renovators are generally higher than those of first-time home buyers. "said Kelly. "In addition, first-time homebuyers of lesser-value established homes typically embark on a home improvement and renovation program, thereby stimulating the building sector."
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