John Cunningham, president of the REINSW, says the state government's moves to help first-home buyers are welcome "first steps" to address housing affordability pressures in NSW.
John Cunningham, president of the REINSW, told SCHWARTZWILLIAMS the state government's moves to address housing affordability pressures are a step in the right direction, but more needs to be done.
Cunningham said the government's scrapping of stamp duty for first-home buyers for new and existing homes up to a value of $650,000 is "long-overdue acknowledgement" that first-home buyers want to buy existing dwellings. Previously, the concession was only up to $550,000 and was only for new homes.
The government also announced stamp duty discounts for first-home buyers for homes up to a value of $800,000.
Cunningham said the help probably won't be enough for first-home buyers wanting to live in Sydney, but will be a boost for regional buyers.
The government will also double the stamp duty surcharge on foreign investors from 4 per cent to 8 per cent, and will increase land tax for foreign buyers from 0.75 per cent to 2 per cent. Stamp duty discounts for foreign buyers purchasing off the plan will be removed.
Cunningham said the moves addressing foreign buyers are "more political than practical", pointing out that media reports that 10 per cent of NSW real estate purchasers are by foreign buyers is misleading. Of that 10 percent, half actually live overseas, with the remainder being Australian residents, he said.
A decline in foreign investment in Australian real estate could adversely impact supply and the construction sector, warned Cunningham.
A cap on the number of foreign investors buying into a development would have been a better way to go, said Cunningham.
Cunningham said more could still be done by the state government to improve housing affordability. Stamp duty brackets have not changed for 30 years, he said, and should be recalibrated.
Zoning laws and planning should be set to encourage more medium density development, said Cunningham, explaining that this kind of home has great appeal among buyers.
“We are waiting on the detail of the medium density changes as this was a big part of our lobbying," said Cunningham. "REINSW believes it is one of the quickest solutions to the supply/choice issues of getting people moving to more appropriate housing."
Read more about the NSW state government's policies to address housing affordability:
NSW to consider stripping councils of DA powers
New home completions beat 1971 record, but will it be enough?