The Federal Budget will do little to help first home buyers into the property market, First National Real Estate has claimed.
The company’s chief executive Ray Ellis said the Budget did not remove government impediments to developers, or solve the shortage of land releases and excessive taxation on new housing.
“The Federal Treasurer continues to ignore calls to reform inefficient taxes like stamp duty and seems to think that discussions about ending negative gearing won’t have an impact on the very working families that this government has sworn to protect,” Mr Ellis said.
“Investors have been slow to return to the property market and ending negative gearing or adding investment property exit taxes, as the Treasurer has suggested, will see them run for the exits. The shortage of investment property ownership is already showing up directly in rapidly rising rents.”
According to Mr Ellis rents have surged by 7.6 per cent in New South Wales and by 6.5 per cent in Victoria in the year to March.
“Without decisive action to coordinate government authorities, we are no closer to solving the supply problems that force up housing prices and lock out young buyers. Without incentives for investors, we are no closer to unlocking supply of more affordable rental properties.”