Home News Budget fails to deliver

Budget fails to deliver

Font size :

Some sectors of the property industry have blasted the 2010/11 Federal Budget, saying that it fails to offer reasonable solutions for Australia’s housing shortage and unaffordability problems.

Housing Industry Association (HIA) managing director Shane Goodwin said that although the Budget offers a sensible plan for economic recovery and avoids pre-election big spending promises, it does little to address the above points. “Unfortunately, the Budget fails to deliver measures to alleviate Australia’s chronic housing shortage. The federal government’s own Housing Supply Council estimates Australia’s housing shortage at nearly 200,000 in 2010 and projects that shortage to double over the next 10 years,” he said.

“Australia’s housing pipeline remains clogged by exorbitant infrastructure costs, planning delays and slow land release. Until these bottlenecks are removed, many Australian families will remain locked out of home ownership as house prices and rents push ever-higher.”

Monique Sasson Wakelin, director of Wakelin Property Advisory, agreed that the Budget had failed in a few key areas. “This government has ignored any serious reform to aid struggling first homebuyers or redeploy the billions of dollars paid by Australians in property taxes which the economy largely depends on,” she said. “Stamp duties paid by homebuyers are, for instance, a major cause of our ongoing housing affordability problem, while land taxes paid by property owners are a key competitive disadvantage for Australian investors.” Wakelin added that a major overhaul of property tax was needed.

Commsec said that it disagreed with the government’s belief in a “no-frills, no-nonsense” Budget. “Australia was successful in avoiding recession last year and, unlike other advanced nations, isn’t weighed down by huge deficits and debits. We should be building on that success. Spending should be cut, not curbed, so that the Reserve Bank – and homebuyers – don’t have to shoulder the burden,” Craig James and Savanth Sebastian said in the Economic Insights report.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

MyState refunds over-charged interest and fees to customers MyState refunds over-charged interest and fees to customers

These errors were the result of shortcomings in MyState’s manual administration processes, ASIC said Read more

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable ... Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 28, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords