The-Federal-Budget-2009
18th May 2009 | category [ Articles ]
With many people expecting the first home buyers
grant to be wound back on existing dwellings,
it comes as a surprise to many that the grant
has been extended across the board
The big news this week was the announcement of the Federal Budget.
In its most basic form, the budget is likely to provide some clarity to
potential buyers about how the government will treat them in the new financial year.
Leading up to the budget there was a great deal of speculation about the future
of the boost to the First Home Buyers Grant; what (if any) incentives or concessions
might be introduced for non-first home buyers and investors and how the government
expects the national economy to travel over the next year.
The budget has provided more certainty to the market which is likely to have a positive
flow on affect.
Many were expecting that the Government would maintain the $21,000 boost for new
dwellings and wind back the grant for existing dwellings to $7,000.
The logic being that it makes sense to focus the greatest stimulus on areas
of the housing market that will provide the greatest benefit to the economy.
A focussed stimulus on new dwellings would have a substantial multiplier effect, creating
jobs and stimulating demand for buildings products and services as well as home appliances,
furnishing and providing benefits to a wide range of other peripheral industries.
In addition, more new dwelling sales will assist in alleviating
the chronic housing undersupply Australia is facing.
Another announcement in the budget that is likely to impact on the property
market is the $22 billion allocated to infrastructure spending. The key benefactors of the
infrastructure fund will be regions located along the Eastern Seaboard, particularly
South East Queensland. Perhaps the greatest and most immediate requirement, however,
is to establish much needed linkages between the outer fringes of the nations metro
areas where the large proportion of Australia’s population growth is concentrated.
Many of these regions are in desperate need of transport infrastructure improvements and
public transport options. This is where the most affordable land is located,
yet few people desire to live where travel routes are congested or are substandard.
The extention of the F3 freeway to Branxton is very welcomed by many in the Hunter region,
as it opens up a far greater gretaer area for residential living. Many areas of the Greater
Newcastle area are becoming favourable for people to live in and this gives
greater access for many families
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