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Brokers divided as real estate group calls for reinstatement of FHB incentives

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Australian Broker | 29 Apr 2013, 06:00 AM Agree 0
REINSW has renewed its call for the reinstatement of first home buyer incentives for existing properties - but brokers are sending a mixed response
  • Goodo | 29 Apr 2013, 11:10 AM Agree 0
    People talk about the property boom we had since 2000 and the introduction of the FHOG. Remember this was to ofset GST of new properties being built. Its just taken 12 years to realise that point!!!
    We did not have a property boom, instead we had a price boom.
    Prices were inflated by increased demand from poorly thought out government interference in the free market.
    Leave the FHOG on NEW properties only as it should have always been. Perhaps then we would have actually built some housing and not be facing the current shortages and hence increased price that we all face.
  • Country Broker | 29 Apr 2013, 11:15 AM Agree 0
    The Vic Goverment has just wiped out the 7,000 FHOG on established homes up to 600,000 after July 1st and brought forward a 40% reduction in Stamp duty WOW , but introduced a 10,000 FHOG and 40% stamp duty reduction on Stamp duty for new gomes constructions after July 1st .
    Great if you are in the City and looking to build , not so great in Regional Vic if you wanted to buy an established home . If you were purchasing an established home for say 300,000 thge saving would be $4,548 on the satmo duty that is not 7,000 the purchaser would be 2,500 worse off . This is obviously a grab for cash by the Vic and NSW goverments and a move to send First home buyers to the urban sprawl and fringe . It is even worse for the regional areas.
    Great if you are a developer or project builder, not so good if you want to seel an established home any where
  • Patrick | 29 Apr 2013, 11:26 AM Agree 0
    The original FHBG was introduced to offset the impact of GST on the property market in that existing residential properties were exempt but new construction not so. The inclusion of existing property in those measures was the mistake. The problem now is communication as most of the young people I speak to think that there are no longer any FHB incentives. Further hardly anyone seems to know about First Home Saver Accounts which should be openned by or for (family contributions are permitted and cannot be accessed by the prodigals other than for the designated purpose or a rollover into superannuation) every 18 year old on that critical birthday.

    What is also really needed to improve liquidity in the property market is a complete rethink of property taxes. People who move a number of times during their lives are being penalised with repetitive lump sum stamp duty imposts. In my view a universal annual property tax (not just on land, not just on investment, but on all property) is required to broaden the tax base. A simple grandfather period for those who have purchased in the last 10 years might be needed such as a phase in for up to 10 years from the date of their purchase. The initial inclusion of currently untaxed property will offset the phase in for recently purchased property and the progressive expiry of phase in benefits (based on purchase date) will increase revenue every year along with escalation in line with property value. This will reduce the deposit required to purchase with a standard 80% loan from up to 25% to 20%.
  • SIDBROKER | 29 Apr 2013, 11:27 AM Agree 0
    You would be better served attacking NCCP.
  • alex | 29 Apr 2013, 12:03 PM Agree 0
    why should the fhb be made to purchase a new home somewhere they dont want to live, it should be reinstated
  • Andrew Strachan | 29 Apr 2013, 12:54 PM Agree 0
    I believe it is imperative to reinstate stamp Duty exemption for FHB's. A 5% deposit turns into nearly 10% once you factor in Stamp Duty and legals. Valuations for traditionally FHB type properties have fallen through the floor due to the lack of interest in this market segment. The thing to remember is that if there is no first home buyers then there will be no second home buyers except investors. Barry deserves a kick up the Khyber for this one. I am not suggesting we need a "grant" but stamp duty exemptions are a must, and brokers in NSW should be lobbying their state members heavily.
  • Tim | 29 Apr 2013, 05:06 PM Agree 0
    Patrick has hit the nail on the head with his comments. Education is the key here. I too have clients coming to me who are just not clear as to what the incentives are and in just about all cases they have no idea about First Home Saver Accounts.
    What would it take for the government to send every 18 year old a letter detailing the current incentives and benefits available. This could be a great way to get the message out there.
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