Raine & Horne reacts to state budgets

Raine & Horne reacts to state budgets

30 May 2016 by Staff Reporter 0 comments

Property giant Raine & Horne says the Northern Territory’s budget is a welcome boost for first home buyers (FHBs), but the Western Australian government’s decision not to reinstate some subsidies for buyers is an opportunity lost.

The 50 per cent stamp duty discount announced in the Northern Territory’s recent budget has now come into effect. It applies to established properties valued up to $450,000, and is capped at $10,000 for more expensive properties.

The $26,000 First Home Owner Grant (FHOG) for the purchase of new homes remains in place.

Glenn Grantham, general manager of Raine & Horne Darwin, said the new concession will create the perfect storm for FHBs at a time of easing house prices in the capital, as well as historic-low interest rates.

“This will get more first home buyers into the market, which is excellent policy-making in light of the low volumes we’ve experienced over the last two years,” he said.

Mr Grantham said the number of inquiries from FHBs has picked up significantly since the budget announcement, with housing markets in Palmerston expected to be the major beneficiaries.

Meanwhile, the WA government’s decision not to reinstate the $3,000 FHOG for the purchase of established homes in its 2016-17 budget is an opportunity lost, according to Raine & Horne’s general manager for WA, Craig Abbott.

“Many first home buyers have a preference for Perth’s inner and middle-ring suburbs so they can be closer to their jobs,” he said.

“For many, this means securing an established house or apartment rather than a new property, which are more common on the city’s fringes.”

Mr Abbott said the real estate group has seen a drop of almost 9 per cent in the number of FHBs securing established homes as a result of the WA government’s decision to cut the $3,000 grant in last year’s budget.

“Tragically, some of these first home buyers are being lost to the property market, as they prefer to stay in rental properties closer to work and the entertainment delights offered by inner Perth,” he said.

[Related: Raine & Horne encourages more winter auctions]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?