We, the mortgage brokers at Smartline Rockingham, take our responsibilities seriously. One of those is to keep up on every news bit concerning the housing sector. The recent leadership change from Tony Abbott to Malcolm Turnbull is seen by many in our industry as a guarantee of a renewed focus on our economy.
According to the Chief Executive of the Property Council of Australia (PCA), Ken Morrison, the recent change is vital for getting Australia back on track. Mr Morrison wants to see an improvement of living standards across Australia, fueled by a series of tax reforms. Mr Morrison feels that some of these reforms may provide more opportunity for first home buyers to gain entry into the housing market.
When commenting on the leadership change, Mr Morrison reminded Australians that the property industry is the nation’s second largest direct employer and is the largest contributor to the Gross Domestic Product (GDP). There is hope that the government will work with the housing industry to address present needs and future growth in the housing sector.
Mr Morrison also states that any decisions which help the housing sector must also benefit the country as a whole.
Master Builders Australia and the Australian Industry Group also encouraged Prime Minister Turnbull to introduce the changes necessary to grow the economy in a sustainable manner while creating more consumer confidence.
What This Means to You
We aren’t 100% sure what is going to happen yet, but with any leadership change, there is going to be a ripple effect. Buyers and economists are looking at the economy from two different viewpoints. Where an economist may see “growth,” the consumer sees “higher prices.”
We feel that, after a year of flat prices, housing prices are going to start growing again. We don’t think it is going to be drastic, but we think there will be growth. For first home buyers, we recommend buying a new home and taking advantage of the First Home Owner Grant (FHOG) and the First Home Owner Rate of Duty (FHOR).
To learn more, call Smartline Rockingham today: (08) 9527 1800.