There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each Saturday morning I like to share some of the ones I’ve read during the week.
The weekend will be over before you know it, so enjoy some interesting reading.
Federal budget tipped to deliver for HomeBuilder and first-home buyers
This article on Realestate.com.au looks at whats we can expect.
The federal budget may deliver more support for first-home buyers and an extension of the HomeBuilder scheme, but calls for a significant funding boost for social housing could go unanswered.
Experts predict the federal government’s big-spending budget on 6 October will include housing measures, although it may not deliver as much of a housing construction boom as the industry would like.
There is also the chance of a rate cut by the Reserve Bank of Australia on budget day.
Housing initiatives are expected to feature in the federal budget. Picture: Getty
“This will be one of the most important federal budgets in many decades as Australia plans its recovery from the deep economic impact of the COVID-19 pandemic,” Property Council of Australia group executive, policy, Mike Zorbas said.
AMP Capital chief economist Shane Oliver said there would likely be more assistance for the housing market, as underlying unemployment was high and the coronavirus hit to immigration posed a threat to housing construction until investment levels were restored.
Dr Oliver said the budget was expected to be big on spending and economic reforms designed to spur demand and jobs, including an extra $10 billion in infrastructure funding.
“They’re probably not aiming for a housing construction boom, they just want to keep up the level of construction activity until immigration is returned,” he said.
HomeBuilder may be extended
Dr Oliver and realestate.com.au’s executive manager of economic research Cameron Kusher said the government may extend the HomeBuilder scheme, which provides a $25,000 grant to build a new home or substantially renovate an existing home.
What the HomeBuilder scheme means for propertyProperty groups want the the $680 million program extended beyond its 31 December end date.
Mr Zorbas said it made sense for HomeBuilder to be extended for a further six months, and for it to move to a six-month unconditional commencement window. Currently construction must commence within three months (six months in Victoria) of the contract date.
“HomeBuilder has been a vital shot in the arm for residential construction,” Mr Zorbas said.
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“Every $1 million spent on residential construction supports nine jobs.
“It’s a highly efficient stimulus measure that delivers a great economic return.”
In its pre-budget submission, Master Builders Australia called for a 12-month extension to HomeBuilder at a cost of $1.3 billion.
The Real Estate Institute of Australia recommended reducing the lower limit for renovations – currently $150,000 – to encourage a greater uptake of the program.
Focus on first-home buyers
Mr Kusher said the First Home Loan Deposit Scheme, which provides a guarantee for up to 10,000 eligible borrowers per financial year to purchase a home with a 5{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} deposit, may be expanded.
“Without people migrating to Australia, you do have a missing source of demand for housing, and first home buyers are already starting to fill that gap,” he said.
“The challenge is there’s only ever at one point in time a finite number of people who are able to have a big enough deposit and get into the market.”
The REIA said the scheme should be expanded to include all first-home buyers, arguing the 10,000-loan cap was arbitrary and represented less than 10{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} of first-home buyers.
“As such it is a lottery and the bulk of first-home buyers will not benefit,” the REIA said in its pre-budget submission.
Stock on market plunging
In this Blog, Pete Wargent explains that property listings are being bought faster than stock can be brought to market.
Read the full article here
HomeBuilder scheme: Buyers, renovators in Sydney, Melbourne unlikely to meet grant criteria, experts say
What outcomes can we really expect from the HomeBuilder scheme?
This article from the Domain.com.au looks at what can be expected.
Read the full article here
Melbourne and Sydney are dragging property prices lower, as the rest of the country bounces back up
It would seem our two largest property markets are dragging down property prices.
This article on Business Insider looks at what’s going on.
Australia’s largest two property markets are distorting the national property index, as prices begin to bounce.
While nationally, prices fell 0.1{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} throughout the month of September, nearly every single market got more expensive.
With Sydney and Melbourne home to around 40{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} of the nation’s housing, large declines there are enough to dwarf growth elsewhere.
“By far the weakest result across the capital cities, Melbourne housing values were down 0.9{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} in September,” CoreLogic head of research Tim Lawless said, noting values are down 5.5{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} since March.
That’s more than twice other capital cities, falling an average of 2.6{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} since the start of the pandemic in Australia.
Sydney prices meanwhile fell another 0.3{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} over the month to be the only other city in decline.
However, as Melbourne and Victoria make a belated exit from a lengthy lockdown, Lawless is optimistic the market might turn again as confidence and the economy rebounds.
“Since peaking in March, Melbourne values are down 5.5{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc}. With restrictions starting to lift and private home inspections once again permitted, we expect to see activity lift in October,” he said.
Sydney, meanwhile, is easing at a quicker rate as the overall market improves, Lawless said.
For those living outside of Australia’s two gargantuan capital cities for example, property is only getting more expensive despite a recession.
Adelaide prices jumped 0.8{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} and Darwin twice that in August. Brisbane moved 0.5{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} higher with Hobart, Canberra and the regions not far behind.
“From a cyclical perspective, regional areas weren’t recording the same growth conditions pre-COVID, so home values in these markets are often more affordable, and don’t have a high base to fall from,” Lawless said.
Good News Stories From Around the World That Will Brighten Your Day
There’s no doubt that news headlines are less than positive these days, but that doesn’t mean there are no ‘good news’ stories we can smile about.
An article on readersdigest.ca looks at some good news stories from around the world to brighten up your day.
Read the full article here
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