Ensure you never miss an issue of the
real estate business bulletin
State Budget benefits property market

State Budget benefits property market

by Reporter 0 comments

Staff Reporter

The 2013/2014 Victorian state Budget will assist property owners overall but at the cost of first home buyers, according to the Real Estate Institute of Victoria (REIV).

REIV CEO Enzo Raimondo said the Budget overall will help boost the state’s economy.

“This year’s Budget aims to deliver the most important thing for the property sector: economic growth at healthy and sustainable levels,” Mr Raimondo said.

“The overall Budget settings are sound. History has shown that when the economy stalls, property prices and transactions drop, with consequences for home owners and ultimately the state Budget.”

But Mr Raimondo believes recent changes to first home buyer grants will be a huge burden on those looking to enter the property market.

“It’s a concern that the majority of first home buyers, especially those in regional Victoria and in affordable segments, will be worse off following the abolition of the First Home Owners Grant for existing homes. 

“That measure will see a saving of $63.8 million in the next financial year and $402.8 million over the forward projections.

“The acceleration of the stamp duty cuts to 40 per cent does not cover the cost of the grants abolition for the majority of first home buyers.  The state government should have matched the cuts in the grant with further reductions in stamp duty.”

However, others in the industry didn’t feel the changes would be at all detrimental.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
State Budget benefits property market
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?