Housing industry positive on NSW budget
Fri June 27, 2014
Industry leaders have praised the recent New South Wales budget for focussing on building growth on the back of the rising construction market.
The Housing Industry Association (HIA) in particular singled out the budget's raising of the First Home Buyer Scheme's upper threshold from $650,000 to $750,000, a measure it had requested for two years, according to a June 17 release. The new figure will better reflect the steadily rising house prices in the state.
"This provides young first home buyers a real opportunity to enter the market for a new dwelling and family home as median house prices are now around $600,000 in NSW," HIA NSW Executive Director David Bare said.
This will be even more welcome news for buyers attempting to enter the tight Sydney market. The median house price in NSW's capital was $680,000 for the three months to April, according to RP Data. This price is likely to continue to grow, with Sydney having experienced a 16.7 per cent increase in house values during the year to April, according to these same figures. This means that as prices continue rising, investors are likely to still see buyers lining up to purchase homes in the city.
The Property Council of Australia also praised the budget for its abolition of "nuisance taxes" in a June 17 release. One such tax is the mortgage duty, which will be abolished in the state from July 1 2016. The mortgage duty is an added duty charged on top of the amount secured by mortgage that must be paid within three months after its first signing.
Removing the duty will make the purchasing of property more affordable for buyers, who will not have to content with the added pressure from an extra cost on top of the price of housing. This is especially good for first home buyers who are saving less than before, according to a May survey of consumer sentiment by CommBank.