The Real Estate Institute of Australia (REIA) is calling onthe Federal Government in election year to tackle the key issue of homes andjobs in its 2022 Federal Budget.
REIA President Hayden Groves said REIAs 2022 pre-budgetsubmission contains three simple recommendations to grow Australias homes andjobs markets: help first home buyers, unlock supply and create jobs inproperty.
First home buyers
REIA are calling on the Federal Government to expand theFirst Home Loan Deposit Scheme (FHLDS) to allow more first home buyers to accessthe deposit guarantee and to expand the First Home Super Save Scheme (FHSSS).
We have seen a dramatic reduction of loans to first homebuyers with a staggering fall of 21.5 per cent over 2021, reinforcing the needfor governments to address both housing supply and affordability for first-timebuyers, Mr Groves said.
On a national basis, Australian Bureau of Statistics datashows the average loan size grew by $6,000
We have also renewed our calls for Budget 2022 to makeinterest rates tax deductible for first home buyers, even for a prescribedperiod of the loan, as is the case for property investors, Mr Groves said.
As speculation about interest rates continues in the media,REIA have also renewed calls for the 2022 Federal Budget to make interest ratestax deductible for first home buyers, even for a prescribed period of the loan,as is the case for property invesetors.
Its one thing to achieve a deposit, and another toservice a loan in an environment as interest rates rise something we have notseen in Australia for over 10 years so we need to put in place fair andsensible recommendations to assist Australians coming into the marketplace, MrGroves said.
Unlock supply to help affordability
Current market conditions mean that a national plan forhousing supply and affordability is badly needed. Politicians cannot talk aboutaffordability without talking about supply.
Affordability in Australia is at its worst point since2008 where 45.8 per cent of family income was required to meet mortgagerepayments.
At the same time, stock levels or property available forsale in some areas are up to 40 per cent reduced from pre-pandemic levels.
The weighted average median house price for the eightcapital cities increased to $961,059 during the year to September 2021, whilethe proportion of income required to meet loan repayments increased to 36.2 percent nationally.
Coinciding with this is a lack of rental supply which hasseen vacancy rates hit critically low levels of under one per cent. Rents areincreasing and those needing to rent properties are struggling to secure alease, Mr Groves said.
We need a plan to unlock supply for both buyers andrenters that looks at everything from land release planning through toincentivising more rental stock coming online and a national plan to phase outstamp duty.
Stamp duty has made selling and buying a home prohibitivewhich has contributed to a long-term downward trend for listings.
Create more jobs in property management
REIA is also calling for the Federal Government to helpunlock jobs in one of Australias most talked about industries real estate.
Real estate has been one hugely impacted in termsworkforce retention from the COVID-19 pandemic with around 4,500 vacanciesneeding to be filled Australia wide, Mr Groves said.
Forty per cent of our property management businesses arenow facing staff shortages due to lack of skilled candidates.
We are seeing agencies have great success recruitingcandidates from sectors like tourism, aviation and retail and want to giveAustralian workers support and confidence to successful transition to a careerin real estate from other roles.
In Budget 2022, wed love to see money from reskillingprograms dedicated to a Property Manager Mentorship program to help Australiansjoin the real estate sector.
Real estate is an important part of Australias economy,and we want more Aussies in real estate jobs, Mr Groves said.
