30 April 2018
Although housing affordability has improved in WA in recent times, it remains a legitimate concern for many West Australians.
A recent Housing Affordability Report by the Real Estate Institute of Australia and Adelaide Bank showed while affordability improved in WA on an annual basis in the December quarter 2017, it had declined when compared to the September quarter 2017.
It’s concerning that despite favourable buying conditions and record low interest rates, housing affordability remains such a pertinent worry for many West Australians.
State property taxes are a barrier
REIWA is a strong advocator for addressing housing affordability, and we firmly believe current state property tax arrangements significantly contribute to this problem.
When REIWA surveyed the WA public about this topic last year, respondents overwhelmingly told us that property taxes negatively impact their lives. This is a growing issue and we need to do something to address it.
Home ownership still attainable in WA
The good news is; WA remains one of the most affordable states in the country for housing. Particularly in comparison to east coast property markets like NSW, where the median house price is higher and first home buyers find it more difficult to enter the property market. Here in WA, home ownership is still very much attainable.
In fact, we have the highest proportion of first home buyers out of any state or territory in Australia, with the Housing Affordability Report revealing 34 per cent of all owner-occupier home loans in WA in the December 2017 quarter were to first home buyers.
Additionally, although the average home loan amount to WA first home buyers increased during the December 2017 quarter, it was still $50,000 more affordable than the average loan amount required in NSW. A considerable difference.
However, more needs to be done. While the McGowan Government continues to face a challenging fiscal environment, REIWA still believes an incremental reform of property taxes will encourage both owner occupation and investment.
The residential property market is a key contributor to state revenue, specifically through transfer duty – one of the most inefficient and ineffective taxes. In the long term, we would like to see the Government transition to a broad-based land tax instead of relying on transactional taxes for revenue.
All West Australians deserve to have access to affordable, accessible and appropriate housing stock.
We call on the McGowan Government to commit to conducting a state tax review to look at more sustainable ways of funding essential services that doesn’t impact so heavily on affordability.
16 April 2018
Hayden Groves via therealestateconversation.com.au
The REIWA has come out in support of the WA state government’s plans to improve housing affordability by increasing housing diversity and density.
The Real Estate Institute of Western Australia supports a State Government plan to improve housing diversity and density to boost housing affordability.
REIWA President Hayden Groves said housing affordability remains one of the more challenging issues affecting West Australians.
“REIWA believes that access to secure and appropriate housing is essential to the success of communities and the prosperity of our state.
“REIWA is committed to ensuring everyone wins in property and will work alongside the WA Government to ensure the Affordable Housing Action Plan makes a positive impact to the lives of West Australians,” Mr Groves said.
Minister for Housing; Veterans Issues; Youth, Peter Tinley outlined the strategic plan this week, which promotes a ‘connected city’ by ensuring the needs of our diverse population are met.
“REIWA would like to congratulate Minister Tinley and the WA Government on this initiative that will promote a connected, sustainable and accessible property market into the future,” Mr Groves said.
￼The McGowan Government aims to deliver affordable homes as part of its METRONET vision and is ￼currently developing its Affordable Housing Action Plan for release in mid-2018.
REIWA will work alongside the Government during the development of the action plan which focuses on:
- Connection between people, place and home;
- Real and enduring affordability for those on low-to-moderate incomes;
- Earlier and more connected housing and support services;
- Creation of diverse precincts that will include options for low-income earners; and,
- Diversity of options to meet diversity of need.
REIWA sits on the METRONET industry board and will work closely to advocate the delivery of affordable housing stock and the creation of METROHUBS.
REIWA will continue to actively support Government in ensuring all Western Australian’s have access to affordable housing through collaboration with the private sector.
08 February 2018
Parliament has passed the legislation allowing first home buyers to save for a deposit inside superannuation through the First Home Super Saver Scheme (FHSSS) and also allowing older Australians to ‘downsize’ and then contribute the proceeds of the sale of their family home into superannuation.
From 1 July 2018, a first home buyer will be able to withdraw voluntary superannuation contributions they have made since 1 July 2017(up to $30,000 each, with individuals being able to contribute up to $15,000 a year within existing caps), along with a deemed rate of earnings, to help buy their home.
Also, from 1 July 2018, when Australians aged 65 and oversell a home they have owned for at least 10 years, they may contribute up to $300,000 from the proceeds into their superannuation accounts, over and above existing contribution restrictions. Both members of a couple may take advantage of this measure, together contributing up to $600,000 from the proceeds of the sale into superannuation.