First Home Owner's Grant: FAIL

Here is an interesting article on the First Home Owner's Grant in the SMH on the success (or apparent failure) of the First Home Owner's Grant. The focus on the demand side of the market has had very little impact on increasing home ownership (nor affordability for that matter). The failure to consider the hindrances to supply of property has been the key factor in lower house ownership now than many years ago.

Jonathan Marquet
Emil Ford & Co 

Liberals promise cheaper property

Unless you have had your head in the sand, you would be aware that our state will be heading to the polls on March 26 (although given the choices available, a head-in-the-sand approach is certainly arguable).

Here are a couple of highlights for you that concern the world of property:

• The Liberals have promised to remove the Torrens Assurance Levy or the "Homebuyer's Tax" as they call it. Labor has not offered to do the same, unsurprisingly. 
• Both parties are chomping at the bit over planning laws and it is hard to separate the two. Both are offering the same paradox of less red tape and more land releases whilst giving communities planning control.

Lower transaction costs are good for the property market, but it remains to be seen whether scrapping the "Homebuyer's Tax" will make homes more affordable for the average punter.

I will completely understand if I see people diving head first into the ground on March 26. 

Jonathan Marquet

www.emilford.com.au