Which Party's Housing Policy Is Better? Labour Vs Liberal
In This Week’s How's The Market | Edition 109
Which Party’s Housing Policy Is Better? Labour Vs Liberal
Should Boomers Receive A Tax Break To Encourage Them To Sell
Another Melbourne Stunner In Toorak
Which Party’s Housing Policy Is Better? Labour Vs Liberal
Firstly, what are they?
Liberal’s policy.
Pros:
The benefit of this policy is that it helps only first home buyers get into the market with savings in their super which many 30 year old renters may already have and additionally, it helps them in the first 5 years with repayments which is likely when their LVR and risk will be at its highest.
This policy will encourage more new builds.
Cons:
This policy is aimed at first home buyers that are wanting to buy a new build property.
It’s worth noting many people (like all of our clients) wish to purchase established properties and this is not for them.
Labour’s Policy.
Pros:
The benefit of this policy is that it helps all first home buyers, regardless of their income, to get into their first home and out of the rental market.
It allows them to purchase established properties closer to the city which is where many first home buyers want to live.
There is no cap on the number of places as there has been in recent years.
Cons:
Whilst this helps first home buyers into the market, it doesn’t help them with repayments.
This means there could be more competition to get in and it could push prices slightly higher, and then FHBs will be left to manage a loan for 95% of the property value by themselves.
My Thoughts
If the Liberal policy was available for established homes, I think that would be the better policy as it tackles not just accessibility, but also affordability for those that do get into the market.
If it was purely based on these two policies and which would benefit the average first home buyer more, I think Labor's policy is better overall. Mostly due to the fact that many first home buyers don’t want to live on the outskirts in new house and land packages.
However, with that being said, it doesn’t look like either of these policies will really make a dent in the lack of supply for properties on either the home buyer or renter fronts.
The total forecasts for new supply is still hugely below the National Housing Accord target of 1.2 million homes in five years. And neither policy looks to try to fix this issue.
What The Agents Are Saying
Holiday time!
The amount of out of office replies I received from agents this week has been huge.
It is a bit of a calm before the storm with ANZAC Day and the election weekend still to come.
This past week and the coming two weeks will be quieter than usual in the world of real estate.
However, many agents are still preparing all their campaigns for the coming weeks.
I believe next week will see many properties coming onto the market with auction campaigns for the 23rd and 30th.
The Wow Factor!
12 St Georges Road, Toorak, Vic 3142
Another of Melbourne's finest shows we really do have some of the best real estate in the world.
This property is a monster 4 storey home with a 8 car basement garage and includes a plethora of what we would call Wow Factors including:
Incredible home theatre
Massage room
Steam room
State of the art gym
Massive cellar
A games room that looks like a nightclub
A library
1500m2 of internal living space
Price Guide: $36,000,000 - $39,000,000
In The Media
‘Totally disgusting’: Surprise results of Boomers’ empty houses poll
If you’re after a laugh - check out this article.
It goes through the comments of a poll that suggested providing a tax break to boomers to help ease the transition from larger homes into smaller homes as they downsize.
The idea is to encourage the boomer generation to downsize and free up the large homes for young families.
It seems everyone HATES this idea based on the feedback.
Final Thoughts
Both the Liberal and Labour housing policies have pros and cons for FHBs.
Though neither really address the underlying issues of lack of supply.
I don’t believe either of these policies will make a huge difference for any first home buyer out there.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
