The NSW Budget was delivered this week on 18 June 2013.
As expected, it failed to reinstate the First Home Owners Grant for existing properties, although the First Home Owners Grant on new homes was extended to 1 January 2016 (it was due to be reduced to $10,000 on 1 January 2014).
For real estate industry group REINSW, the Budget represented a missed opportunity to reinvigorate the property market. Not only is REINSW disappointed that the grant was not extended to pre-existing homes, it had also lobbied for a reduction in stamp duty rates. Surprise surprise… no such reduction was forthcoming. Read what Tim McKibbin, the Chief Executive of the REINSW, has to say about the Budget here
Not everyone agrees with Mr McKibbin. Economist Leith van Onselen was scathing: read his comments, published in macrobusiness.com.au, here. Mr Onselen writes that if REINSW truly cared about first home buyers, it would lobby against negative gearing which encourages investors to compete against first home buyers while doing nothing to increase supply.
Most agree, however, that the Government’s continued over-reliance on property taxes and inefficient planning system do nothing to help first home buyers or the property market as a whole. The planning system is currently undergoing a major reform process. Meaningful reform of property taxes, however, looks far less likely.
Hart Estate Agents is a leading real estate agency specialising in Sydney’s eastern suburbs. Click here to receive further real estate news.