FHBA Market Update: 24/April/2017
Housing affordability has dominated not only our FHBA Market Update but news headlines across Australia for as long as we can remember. It wasn’t just an election issue. It’s a continuing issue. And it must be addressed.
In 15 nights Treasurer Scott Morrison will hand down the government’s first federal budget since the Coalition marginally won last year’s election. If you believe all the speculation, housing affordability will be a big part of the budget. Aspiring first home buyers are daring to hope and we are even noticing some first home buyers who have saved a deposit are choosing to wait on the sidelines until they see what happens in the budget.
However, on Friday, Prime Minister Malcom Turnbull dampened the hope aspiring first home buyers were forming. In an interview that housing affordability would “not be the centerpiece of the federal budget”. This was not the words aspiring first home buyers wanted to hear.
Yet on the same day Assistant Treasurer Michael Sukkar (who was appointed by Turnbull to come up with a housing affordability strategy last year), stated that there will be a measure in the budget that is aimed at helping first home buyers built a deposit ‘sooner’ and that it does not involve ‘super’.
Meanwhile, Morrison continues to rule out any changes to negative gearing, while any changes to the CGT discount seem unlikely.
So what does this all mean?
Well – it’s really hard to say. Opposition finance spokesman Jim Calmers told Sky News on Friday that the government is “too divided and dysfunctional to even come up with a policy, let alone agree whether it should be the centerpiece of the budget”.
“If the government only spent as much time as they do fighting each other as coming up with housing affordability policy, then maybe first-home owners might actual have a chance”.
Now these comments from the Labor party might seem a bit dramatic, but they are also true. Clearly, the ranks inside the Coalition are not on the same page in regards to what should be done about housing affordability, hence all the different possibilities and different views of ministers and backbenchers have been reported by mainstream media. It’s possible the Coalition haven’t even decided which policies (if any) they will present on budget night.
Times ticking Coalition. This issue continues to be in the media and if you don’t deliver in 15 night’s time, there will be very loud (and negative) noise about it.
And we at FHBA will be leading that noise.
News affecting first home buyers
- Government can’t avoid reforming the CGT discount and negative gearing forever – Young people vote too. And they also tell their frustrations (including how they feel unfairly priced out of the housing market) with other voters, such as family and friends. This frustration is only growing and if the Coalition wants to stay in power, they can’t avoid making changes to the CGT discount and negative gearing forever writes The Age
- Biggest bank raises interest rates – last Friday the CBA raised home loan interest rates on a range of products. This comes as other big banks have also recently raised interest rates independently of the RBA as well. But between the headlines of rising interest rates there are some special home loan offers available to first home buyers right now – see the hot home loans in FHBA News
- More details on shared home ownership in Victoria – More details have been released on the proposed shared home ownership initiative (HomesVic) by the Victorian government – read the proposed commencement date and eligibility criteria in FHBA News
- What’s happening to Perth & WA? – WA is home to Australia’s fourth largest city – Perth. While house prices are down 6.20% over the last 12 months in Perth, a newly elected government is focused on growing jobs, boosting the economy and seeing young people get a fair go across the state – see what’s happening in the west in FHBA News
Capital City Price Movements
The CoreLogic Daily Home Value Index (as at 24/04/2017):
- Adelaide – 486.02 (Qtr + 2.3% / Yr + 3.3%)
- Brisbane – 556.39 (Qtr + 1.6% / Yr + 4.0%)
- Melbourne – 908.00 (Qtr + 4.1% / Yr + 16.3%)
- Perth – 565.77 (Qtr – 2.2% / Yr – 6.2%)
- Sydney – 1109.84 (Qtr + 4.7% / Yr + 16.4%)
Preliminary Weekend Auction Clearance Rates (22nd – 23rd of April, 2017)
Interest Rates Update – 24/04/2017
On Friday CBA announced an increase to home loan interest rates on a range of products. However some other banks are offering hot deals for first home buyers right now.
- Compare a range of savings account rates
- Compare a range of home loan rates
- Speak to a home loan expert
New Homes of the Week (ed. 51)
Tweet of the Week
— FHBA (@fhba_com_au) April 21, 2017
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First Home Buyers Australia