The Government needs to address the issues of inefficient state property taxes and give assistance to first time home buyers, the Real Estate Institute of Australia (REIA) have suggested in a pre-budget submission.
Stamp duties representing added costs to property discourage buyers and swing favour towards renovating rather than moving, REIA president Pamela Bennett said.
"Inefficient state property taxes and the development of solutions to improve housing affordability and supply are key issues for the next financial year and we would like to see action from the Government," said Ms Bennett.
While stamp duties are not currently determined by the Federal Government, initiative should be shown to ensure that the states act unilaterally, she said.
The REIA also seeks for the government to help first time buyers who currently lack assistance in a difficult market, and suggests that not only should the grant be retained but reviewed to ensure it provides enough of a financial boost.
"The lack of financial assistance to first home buyers is an issue that requires considerable attention to ensure that property is affordable for young Australians and that they can one day aspire to own a home,” she said.
The REIA have also called on the government to retain current negative gearing arrangements, consider no Capital Gains Tax (CGT) on the family home, and no increase in CGT on an investment property.
They also submitted a request that first time buyers be able to use their superannuation to buy a new home.
“We expect the Government to consider REIA's submission carefully and make an accurate assessment of issues that are of great importance to the Australian housing market," concluded Ms Bennett.
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