Login
iscover
It’s an election year – and the Real Estate Institute of Australia has made a number of requests to the government ahead of this year’s federal budget.
According to REIA president Hayden Groves, homes and jobs are the key issues that need to be tackled in 2022.
Putting forward three “simple” recommendations to grow Australia’s homes and job markets, Mr Groves has urged the federal government to help first home buyers, unlock supply, and create jobs in property.
Giving first home buyers a hand
First up is a call for an expansion to the First Home Loan Deposit Scheme (FHLDS) and the First Home Super Saver Scheme (FHSSS).
Mr Groves said, “we have seen a dramatic reduction of loans to first home buyers with a staggering fall of 21.5 per cent over 2021, reinforcing the need for governments to address both housing supply and affordability for first-time buyers”.
But an expansion of first home buyer schemes already available is not the only recommendation the REIA has up its sleeve.
It’s renewing calls to make interest rates tax-deductible for first home buyers – even if it’s only for a prescribed period of the loan – as is already the case for property investors.
The president believes this is all the more important as speculation about interest rates continues in the media.
“It’s one thing to achieve a deposit, and another to service a loan in an environment as interest rates rise – something we have not seen in Australia for over 10 years – so we need to put in place fair and sensible recommendations to assist Australians coming into the marketplace,” he indicated.
Creating a national plan
Mr Groves is also calling for a national plan for housing supply and affordability – arguing such a move as “badly needed” due to current market conditions.
“Politicians cannot talk about affordability without talking about supply,” he conceded before acknowledging affordability as at its worst point since 2008 – when 45.8 per cent of a family’s income was required to meet mortgage repayments.
Today, the proportion of income required to meet loan repayments is 36.2 per cent nationally – while median house prices push towards $1 million across Australia’s capital cities.
It’s an issue worsened by stock levels or property available for sale being reduced by up to 40 per cent from pre-pandemic levels in some areas, Mr Groves reflected.
“Coinciding with this is a lack of rental supply which has seen vacancy rates hit critically low levels of under 1.0 per cent,” he said.
That means rents are increasing, and those needing to rent properties are struggling to secure a lease.
It’s why Mr Groves argues that “we need a plan to unlock supply for both buyers and renters that looks at everything to land release planning through to incentivising more rental stock coming online and a national plan to phase out stamp duty”.
“Stamp duty has made selling and buying a home prohibitive which has contributed to a long-term downward trend for listings,” he said.
Putting more jobs in property
The third recommendation from the REIA pivots to the real estate profession.
According to the president, the federal government could help unlock jobs in “one of Australia’s most talked about industries”.
The REIA states that the real estate profession has not been immune to COVID-19 induced retention issues, with more than 4,500 vacancies now needing to be filled across the country.
Highlighting how 40 per cent of property management businesses are now facing staff shortages due to a lack of skilled candidates, Mr Groves acknowledged real estate as “an important part of Australia’s economy”.
“We want more Aussies in real estate jobs,” he said.
It’s why the president is urging the government to allocate reskilling program money to a dedicated property manager mentorship program – noting that agencies have already seen great success recruiting candidates from the tourism, aviation, and retail sectors.
According to the REIA, the aim would be “to give Australian workers support and confidence to successful transition to a career in real estate from other roles”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
You are not authorised to post comments.
Comments will undergo moderation before they get published.