Invest
$50k boost on the cards for new property purchasers
A radical plan to kickstart economic recovery post-COVID-19 could see Australians handed $50,000 for buying a new home.
$50k boost on the cards for new property purchasers
A radical plan to kickstart economic recovery post-COVID-19 could see Australians handed $50,000 for buying a new home.
It’s just one element of a seven-point plan put forward by the Property Council to stimulate construction, grow skills, attract investment and boost confidence across the property industry.
Considering it a “demand stimulus” to kickstart construction and the economy, the Property Council believes such a scheme could stimulate the building of 50,000 new dwellings, support more than 200,000 jobs and bring forward market demand for new housing.
The $50,000 grant would only be applicable to purchasers of newly constructed dwellings, at an expected cost of $2.5 billion to the federal government.
With no pricing cap, the Property Council said the aim will be to bring forward all possible market demand and stimulate the greatest economic response, despite being limited to just 50,000 purchasers.
This would sit on top of current first home buyer grants, stamp duty and foreign investor surcharge relief that’s either already on offer or being contemplated by each of the states and territories.
It’s also calling for an unlocking of the $1 billion Housing Infrastructure Facility that’s managed by the National Housing Finance and Investment Corporation to facilitate new housing projects.
The Property Council is also recommending broad-based tax reform, including the abolition of stamp duty.
It’s proposed that this revenue stream could be replaced by a broadening of the GST base in the medium term while existing negative gearing and capital gains tax settings could be retained.
Elsewhere, the Property Council is hoping to improve housing affordability through the recommendation of permanent improvements to planning systems, support for an emergence of Build-to-Rent, and incentivisation of such projects in the private sector.
The recommendations to kickstart the economy through construction come as the Housing Industry Association has flagged that 500,000 construction jobs could be at risk over the next year.
About the author
About the author
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more