Rate reduction to help home owners and increase affordability
by John Edwards
Consultant to and Founder of Residex Pty Ltd.
It has been a very busy month with several events and important announcements made.
For me, the budget is what I expected with the important issues and commitments being delayed until the future. In the near term, it could be argued that the budget is negative towards growth. In the medium term it moves to repair some of the structural problems caused by the so-called spreading of the mining boom benefits among the population. It does so through the removal of the baby bonus and the increase in the Medicare levy to help fund the national disability reform. Perhaps this correction will impact on housing markets but I doubt it as no change is significant enough at an individual level to negatively impact on the capacity of a family to buy a home.
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