What does the Albanese government have in store for the property industry?

What does the Albanese government have in store for the property industry?

What does the Albanese government have in store for the property industry?

The Labor party, the winner of the 2022 Federal election, campaigned on a ticket addressing the rising cost of living, which included a housing policy that proposed the government sharing up to 40% of the property price with first homebuyers.

Tim Lawless, Research Director at property data firm CoreLogic, says while the ALP’s “help to buy” scheme will give some first timers a leg up into the market, it only addresses the symptom of housing affordability.

“Being able to share up to 40 per cent of the purchase price with the government, along with only a small deposit and opportunity to save on lenders mortgage insurance, helps to overcome several of the hurdles of home ownership,” he said.

“Keeping in mind buyers will still have to fund their transactional costs, including stamp duties, legal costs and bank fees.”

Experts foresee that the new federal government under Anthony Albanese will only have a minor impact on Australia’s housing market compared to soaring interest rates and low supply.

Housing supply is a major challenge for the property market.

According to Shane Olive, Chief Economist at AMP, the major impact on home prices is more likely from rising interest rates.

“The main impact on home prices will likely from come rising interest rates (which would have occurred whoever won the election) which we see driving prices down by 10-15 per cent over the next 18 months and may prove to be a headwind for prices thereafter.”

PIPA chair Nicola McDougall, called attention to the most pressing housing issue, prioritising the rental affordability crisis. “It’s time to recognise that investors provide rental housing for millions of Australians. A system needs to be developed to encourage the private and public sectors to work collaboratively together to increase rental supply and to improve rental affordability for tenants,” she concluded.

We look forward to working with the initiatives of the Albanese government on the issues the property industry is facing.

In conclusion, the hike in interest rates & low supply will impact the property industry more. It is best for property investors on the verge of deciding on their next investment property to make a move soon as they find the right fit. Is it you? Mirren is here to help. Contact us now.