News Archives
- Demand may rise on heels of rate drop
- Good presentation adds to good price
- Investors show interest before 30 june
- Perth dwelling sales highest in two years
- Perth vacancy rates down, rents up
- Interest rates on hold
- New mallison real estate facebook page
- Market overview
- December stats bode well for start of 2012
- New mandatory 100 point check for sellers
- Oberthur primary school fete
- Has the market finally bottomed out?
- The path to property wealth
- Westpac predicts rate cut
- 1st homebuyers edging back: rp data
Featured Homes
Latest News
CALLS FOR STATE GOVT TO ADDRESS AFFORDIBILITY
Posted on 23rd May, 2011
The Real Estate Institute of Western Australia called on the State Government to address housing affordability in the lead up to the last budget.
REIWA President Alan Bourke said that housing affordability was a key issue in the community and that there were several things the government could do to help.
“The release of the government’s long term Housing Affordability Strategy is a good blueprint for the future and REIWA particularly applauds the rental brokerage scheme which will provide security to landlords renting to low income households.
“However, what we need are some practical measures right now to assist first home buyers and those in rental accommodation,” Mr Bourke said.
Mr Bourke said housing affordability had improved since 2007, with house prices having plateaued since then.
“Interest rates are currently below the 9.6 per cent peak of 2008 and we have seen an increase in wages and salaries since that time. Of course, REIWA acknowledges there has been increased pressure on household budgets through cost of living increases over the past three years, and much of this has been perceived by some as increased housing costs which is not the case.
“In fact, for those looking to buy their first home the current economic environment is relatively appealing and first home buyers are almost a quarter of all purchasers in our weak market,” Mr Bourke said.
Mr Bourke said that the real issue with housing affordability was not so much with purchasers, but with those unable to buy and forced into the rental market.
“Given that around 80 per cent of rental accommodation is provided by the private sector, the government needs to nurture this section of the housing market to ensure the supply of much needed accommodation,” Mr Bourke said.
Mr Bourke said that the current practice of aggregating land taxes for owners of multiple properties is counter-productive and discouraged many investors from buying and holding more than one property in an investment portfolio.
“We call on the government to disaggregate land tax bills and to charge the owner separately for each property they may own, to make the system fairer and so it doesn’t penalise the very people that the government needs in order to supply affordable housing to tenants on low and fixed incomes,” Mr Bourke said.
Mr Bourke said the government should also rein in stamp duty costs which were a significant impost on people looking to upgrade or invest.
“Stamp duty for first homebuyers was abolished by the previous Labor Government , but the high rates that still exist for other purchasers means that this prohibitive cost can deter investors and stymie upgrade buyers, which in turn stagnates the market and reduces the amount of available stock to renters and first time buyers,” Mr Bourke said.
Source: REIWA Communications (17 May 2011)