State Budget a missed opportunity to boost a flagging market – REINSW

State Budget a missed opportunity to boost a flagging market – REINSW

12 June 2012

The state’s peak real estate body, the REINSW, says today’s Budget is a missed opportunity to protect the engine room of the national economy.

“The Budget has failed to respond to the real challenges facing the market”, said REINSW President, Christian Payne.

“What we needed to see today was the State Government doing its part to back up the Reserve Bank’s heavy lifting in cutting interest rates to reinvigorate a flagging market.

“Unfortunately that did not occur.

“The absence of stamp duty reform, the lack of incentives for purchasers and sellers of existing property and the failure to kick start the investment sector are real failings of today’s Budget.

“Given the growing storm clouds over the international economy and an already underperforming property sector, today’s Budget was the opportunity for the Government to take decisive steps to stimulate the market.

“Whilst the First Home Buyer is an important part of the market, the fact is that the vast bulk of all residential property transactions are for existing dwellings.

“Purchasers and vendors of those properties have simply been left out in the cold.

“The story is even worse for investors who after July 1^st will be on average $17 490 worse off on a $600 000 purchase ‘off the plan’ than if they bought the same property today.

“The lack of incentives for investors will only translate into more bad news down the track for those struggling to find accommodation in the state’s already tight rental market.

“Today’s Budget was a real chance for the State Government to show it was ready to act in concert with the Reserve Bank in stimulating the property sector and helping protect the engine room of the national economy.

“It is not enough to leave the heavy lifting to the RBA yet unfortunately that is what has happened today”, said Mr. Payne.

Media Contact – Julian Brophy 0408276749