Mixed results for real estate in WA State Budget

15 May 2015

The Real Estate Institute of Western Australia has criticised the decision by the State Government to axe the First Home Owners Grant (FHOG) for established homes in Thursday’s Budget, but welcomed the retention of their stamp duty exemption. 
Stamp Duty should be abolished for everyone !!

REIWA President David Airey said being exempt from stamp duty for homes under $430,000 is a huge benefit to all first time buyers. 
Use to be $500,000 ?

“It’s a real cost saving and I’m pleased this threshold has not been lowered,” he said. 

The $10,000 grant for first home buyers who build a new home will remain in place. 
Yes people have to go miles out to get a block and new build for the criteria they need to meet.

“This decision is pushing many first home buyers to the urban fringes, contrary to the State Government’s own urban infill policy. 
They then have to find the extra money to travel every day, they are pretty cut off from their family and circle of friends.

“By aiming the FHOG to new constructions only, first home buyers who want more affordable, established homes in older suburbs are being disadvantaged. 
Totally agree but they cannot buy homes as such they have to be apartments at $430,000.

“This creates an imbalance in the housing market and adds to urban sprawl,” Mr Airey said.
We are sprawling wether we like it or not, so many people came to live the good life in WA and now that the jobs have dried up and they have been shedding there is an influx of properties to rent. 

The changes to the FHOG will not take effect until amending legislation is passed by Parliament, which is expected to occur during the latter half of 2015. 
So create a rush and that will cause prices to jump a little prematurely, sounds like really good planning to me, but honestly do you think $3,000 is a such a big incentive.?

Mr Airey said the Government’s argument that the FHOG policy was geared towards providing more housing was flawed, because Perth was currently oversupplied with dwellings. 
We certainly have a lot to choose from - buyers market at the moment.

“Supply is not the issue in WA, affordability is the issue and making it harder for first home buyers attracted to existing stock makes no sense,” he said. 

According to the Office of State Revenue, the median purchase price of established homes across WA for first home buyers in April was almost $440,000. 
Oh really and what suburb would that be in Mr Office of State Revenue?

Mr Airey was more scathing of the third consecutive budget increase in land tax. 
Scathing or not I cannot believe this tax is allowed to still be there?

“It’s dreadful that the Government is increasing land tax by lifting tax rates and adjusting thresholds. This move will generate $826 million for the Government over the next four years. 
Perhaps they should be re valuing all the suburbs now with the rentals taking such a dive, oh no they wont do that will they?  So the rate payers are paying their council rates on what their properties were supposedly be rented at - oh yes that's right up to the Council's rateable dollar charged against that assessment.... hmmmmmmm

“This tax, especially for commercial properties, will be passed on to tenants through increased costs across the board,” he said. 
Commercial is already suffering so badly !!  Why don't they create their own crash - likely they will see a lot more rentals in the commercial division just walk away.

Mr Airey said the huge hike in land tax was another illustration of the State Government’s heavy reliance on property taxes to fill treasury coffers. 
Because they cannot use the money wisely !!  Let's just keep spending the good old rate payer can fund everything or should I say land owner in this case.

“Once again I call on the Government to have a mature, long overdue discussion with businesses and the wider community with regard to completely reforming the property tax system. 
Don't talk about it do it, follow other Countries and do a flat tax - been saying that for years, no deductions allowed.

“In particular, we need to abolish stamp duty and, over time, replace it with a modest land tax across all owners, as recommend by the Henry Tax Review,” Mr Airey said. 
In what Century is that going to be - please !!!!!!!!!!!!!!!!!  MODEST who are they trying to kid.

 


MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!