Are buyers retreating from a burgeoning market?
By Cameron Micallef
18 May 2021
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1 minute read
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The property market is continuing to go from strength to strength, but future buying intentions for Australians vary, according to new survey data.
Data released by Commonwealth Bank showed that Australians are still eager to get into the market despite rising house prices, which it tips will continue to swell on the back of the recent federal budget.
The market recently broke an 18-year record for house price growth, but it appears not to be slowing, at least based on home buying intentions, which added strength in April. Both home loan applications and Google searches increased in April as the national real estate market attracted a large number of prospective buyers.
2021 Federal Budget: What it means for you
2021 Federal Budget: What it means for you Tuesday, 11 May 2021
Coming off one of the most expensive policy years in the country’s history, the government unveiled its 2021-22 Federal Budget today, detailing its spending plans for health, infrastructure, housing and more.
The “pandemic budget,” as it’s been called by Treasurer Josh Frydenberg, hopes to give Australia’s economic recovery efforts a shot in the arm, boost productivity, and finally bring unemployment below 5 per cent.
There s already plenty of debate about whether it will be sufficient, but there’s no denying the measures outlined today are ambitious. Below, we run through some of the main areas the government will be focusing on.
Almost half of young Australians would use their super to buy a home given the chance, according to a new survey Jack Derwin Australians are split down the middle on whether they would use their super to buy a home. (Ashley Cooper, Construction Photography, Avalon, Getty Images)
A new survey of young Australians has shown opinion is almost perfectly divided down the middle on using super to get into the property market.
Almost equal numbers of people said they would or wouldn t use their retirement savings to get onto the property ladder.
Those who said they would had two different strategies for doing so, either using super as a deposit, or putting it in an offset account to make borrowing cheaper.
Super gets a shake-up – here are the changes
13 May 2021
Last Tuesday’s
Federal Budget heralded further changes to the fantastically ‘tax efficient’ super
system. Two of these changes will make the system more flexible for older
Australians.
The most
important change is the abolition of the work test for those aged 67 to 74.
Retirees and others in that age bracket will now be able to top up their super
by making non-concessional contributions without having to meet the ‘work test’.
They can contribute
up to $110,000 of their own monies to super. They will also be able to access
the ‘bring-forward rule’, where they can potentially make three years’ worth of
Broking industry reaction to the Budget
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Several members of the broking industry have welcomed the federal budget’s measures for home ownership, but some have noted they will not curb the pace of house price growth.
On Tuesday evening (11 May), the federal budget for 2021-22 was handed down, outlining a range of steps to support home ownership and help small businesses recover from the coronavirus pandemic.
The main home ownership initiatives, such as the new Family Home Guarantee, had been announced ahead of the budget release, which the MFAA and several lenders have already welcomed.
Following the full budget being issued last night, more members of the broking industry issued their thoughts on the spending package.