The Property Trio (formerly The Property Planner, Buyer and Professor)

#147: How the Federal Budget will impact the Australian property market - who it targets and benefits and why!


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Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Auctioneers call the shots Cate shares her experience attending an online auction where bids whittled down to one dollar increments. After a tense game of property ping pong where 256 one dollar bids were made, the auctioneer called an end to the pain and declared that only bids of $500 or more would be accepted. This serves as a good reminder that the auctioneer has the capacity to change the rules mid-auction and refuse bids as well. 2. Smoke signals rising from China Evergrande developments Property development firms in China are experiencing a major delay in auditing, with an increase of 75% in delayed results. Five Chinese auditors have resigned in the last three months, and combined with the delayed results, there are the concerns of what the audits may disclose. This could have an impact on broader money markets, flowing into Australia and around the world. The number of property sales in China has dropped drastically, as well as a raised threat of hidden debts. Chinese companies are due to report their December year-end results in April. Watch this space... Federal budget update 1. How does this budget compare with previous budgets? With the federal election looming, no one was expecting to see huge dollars being thrown around in this years' budget, particularly with the large amounts spent on emergency pandemic measures in the last two years. The trio discuss some key points that were missing, namely: housing affordability, the ongoing rental crisis and returning Australia to surplus. 2. First Home Guarantee, (formerly known as the First Home Deposit Scheme) Also known as the 'New Home Guarantee', the First Home Guarantee allows first home buyers to build or purchase a newly built home with a deposit as low as 5%, without having to pay Lenders Mortgage Insurance (LMI), as the government will guarantee the remaining 15% deposit required to avoid LMI. The scheme has been extended from the 10,000 places promised to 35,000 places per annum. The trio discuss the price caps which apply and eligibility requirements. They also ponder the alternatives for first home buyers who are sensitive to the concept of lenders mortgage insurance. 3. Family Home Guarantee Like the First Home Guarantee, this scheme allows single parents with dependents to purchase a property with an even lower deposit without paying LMI. However, there are some key differences which make it a great initiative. Single parents need only a 2% deposit, (not 5%) and they are also able to purchase established as well as new properties under the scheme. Places in the scheme have been doubled from 2,500 to 5,000 guarantees per year. The trio discuss the benefits of this initiative for single parents who have little cash on hand, which is common when going through a divorce or separation as well as competing with other households that have double incomes. 4. Regional Home Guarantee This guarantee is a new initiative introduced, with 10,000 guarantees on offer over the next 3 years. Similar to the First Home Guarantee, the required deposit is as low as 5% and the guarantee is offered for newly built homes only. A key difference is that this scheme is offered to permanent residents, as well as Australian citizens, which the other guarantees are not. Reading between the lines, it seems that the government is attempting to encourage migrants to move to the regions. However, the trio question whethe...
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The Property Trio (formerly The Property Planner, Buyer and Professor)By Cate Bakos, David Johnston and Mike Mortlock

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