Federal Labor's Low Tax First Home Saver Accounts
A Rudd Labor Government will help aspiring first home buyers save a larger deposit by establishing new, low tax, First Home Saver Accounts.
Over the first three years Federal Labor’s First Home Saver Accounts will help around half a million first home buyers save a bigger deposit by establishing superannuation-style low tax savings accounts.
Federal Labor’s First Home Saver Accounts will help boost national savings, with the accounts anticipated to hold around $3.5 billion in savings after three years.
Federal Labor’s First Home Saver Accounts will allow a couple – each on an average wage and saving 10 per cent of their income – to save a deposit of around $64,000 over five years.
This $64,000 deposit is around $14,500 - or 30 percent - more than could be achieved by saving through an ordinary deposit account.
This benefit amounts to $2,900 extra a year in savings towards a home deposit.
One of the greatest obstacles to buying a first home is saving a deposit.
A larger deposit will also reduce the debt burden for young homebuyers and can help them avoid incurring costly mortgage insurance.
http://www.alp.org.au/media/1107/mshou040.php Back to top
RBA keeps interest rates steady in December
The Reserve Bank kept base rates at 6.75 in it's December meeting.
However some standard variable loan rates are set to increase beyond 8.55 percent with Adelaide Bank set to pass on the cost of increased overseas borowing a 0.25 increase in raste would add $50 a month to the average mortgage repayment. Back to top
Low House Building Numbers Adds To Affordability Pressures
Despite solid population growth and high levels of housing demand, Australia ’s new home builders are still building fewer homes than what is needed.
According to Australian Bureau of Statistics figures released today, new home starts eased by 0.8 per cent in the December quarter to 37,413, well below the 40,000 homes needed to ease the current affordability crisis.
Australia ’s peak building industry body, HIA, said that today’s figures underline the risks associated with stimulating housing demand when supply is not up to it.
HIA’s Chief Economist, Mr Harley Dale, said that low housing affordability meant that throughout 2007 there would continue to be fewer homes built than required.
“We need to be building at least 40,000 dwellings per quarter just to satisfy the rate of population growth and household formation,” Mr Dale said.
“In the prevailing situation where low levels of new construction reflect both a lack of affordable supply and higher debt servicing costs, we are still some distance off reaching that all-important 40,000 mark,” Mr Dale said.
www.hia.com.au Back to top
Spare rooms add to pressure
The Australian Bureau of Statistics (ABS) annual social trends report has revealed that households have reduced in size over the last ten years and that 77% of homes had one or more spare bedrooms.
The trend to smaller households living in larger properties adds to housing affordability pressure as more and larger homes are required. Back to top
Real estate auction laws tightened
A second phase of reform comes into effect for the NSW property auction system in March. Individual property buyers convicted of dummy bidding in NSW will face fines of up to $27,500 and companies $55,000 as the NSW Government tightens the law around real estate auctions.
The NSW government says that the new penalties will help the real estate industry.
Under the new law, dummy bidders can be penalised as well as agents or auctioneers who participate in collusive practice during the auction of a property.
Since 2004 two real estate agents have been banned for misconduct involving dummy biding at property auctions.
The maximum penalty for dummy bidding at a real estate auction in Victoria is $24,000. Back to top
|
