Australian home loan affordability at its lowest since 2016
With house prices continuing to soar, home loan affordability significantly dropped. ...
The Real Estate Institute of Australia has thrown its support behind the federal government’s new housing stimulus package.
In a statement issued to the media, the REIA said the HomeBuilder package will go a long way in supporting the residential building sector by providing assistance to owner-occupiers to build new homes and renovate existing ones.
“The REIA believes that the federal government’s announcement of the HomeBuilder scheme today will be a massive boost to the employment of home builders and their tradesmen at a time when a major driver of economic activity was stalling,” said REIA president Adrian Kelly.
“Importantly, it is the owner-occupier that decides how the extra dollars are to be spent, whether it is on a new build or a major renovation to their existing home. This alleviates the concerns that the REIA had with a scheme that was only assisting new dwellings.”
“First home buyers can benefit by buying a property at the lower end of the market in a location they prefer and upgrade immediately.”
“Similarly, home owners wishing to update their home before listing for sale can consider the assistance available to improve the value and marketability of their property.”
Mr Kelly noted that while the scheme will be of benefit to existing home owners and prospective buyers around Australia, “those in the smaller capital cities and regional areas will be able to make the most of the lower prices available for existing property”.
“REIA is pleased that the government has taken on board industry input in designing the ‘HomeBuilder’ package to boost employment,” Mr Kelly said.
“The REIA will be providing a submission to the government on recommended approaches that will assist the real estate sector achieve the government’s objective to keep as many Australians as possible employed and contribute to the economy as it recovers from the COVID-19 pandemic.”