June 30: A date over half of brokers fear

by Mackenzie McCarty22 Jun 2012

Brokers have expressed concern that first-home buyer stimulus changes by state governments on June 30 will further chill housing markets in those states.

A range of state governments including in Victoria, South Australia and the ACT are retiring stimulus initiatives that have propped up first-home buyer demand in those states.

For example in South Australia, an $8000 bonus in addition to the Federal $7000 first-home owner grant will be reduced to $4000 on its way to being completely dismissed in 2013. In Victoria, a $13,000 first home bonus and a $6,500 regional bonus is being axed, in favour of stamp duty concessions.

A survey conducted by 1300 Home Loan of its broker network, which it told Australian Broker now numbers more than 200, found that 52% of brokers feel that cuts to subsidies would significantly weaken demand for homes as they were a key incentive to buy.

A further 39% said the upcoming changes on June 30 would weaken demand only slightly, because the original effect of the subsidies had only been marginal.

Meanwhile, 6% of brokers said they expected no difference because the changes were likely to be offset by the RBA's recent rate cuts, while 4% said they would actually stimulate demand through confidence.

Managing director John Kolenda said most brokers believed government subsidies were a key plank underpinning the property market, which was about to be removed at the wrong time.

“The governments of Victoria, South Australia the ACT and NSW need to implement stronger measures to support the market for both new and established homes, instead of trying to wash their hands of responsibility for this key industry,” Kolenda said in response to the survey findings.

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Victorian stamp duty relief welcomed

COMMENTS

  • by PeterT 22/06/2012 2:10:55 PM

    Any brokers worrying about this need to take a hard look at their business model. If the point of difference for that broker is they're a first home buyer specalist (really good at filling in a FHOG application and writing a 95% deal, perhaps with some construction), they're already in serious trouble.