Anyone who’s in the market for a home loan might be aware of a key issue within Sydney’s property market. This is the thin housing supply that has struggled to keep up with unprecedented demand in Australia’s fastest-growing real estate region. Prices have in turn, skyrocketed over the past year or so as both investors and owner-occupiers have scrambled to get their hands on Sydney property.
A surge in residential construction has helped to remedy this. A recent release by the Housing Industry Association cites Australian Bureau of Statistics figures showing that new dwelling commencements hit a record high of 211,976 over the year to June.
Combined with the continued rationing of investment lending, the increased supply is slowly bringing stability back to Sydney’s market. However, more measures may need to be taken in order to correct this problem. As Residential Executive Director Mr Proud said in an October 19 release by the Property Council of Australia, “one good year doesn’t undo 10 years of underbuilding”.
Less is more
One possible solution is to free up current properties. A November 23 release by the Real Estate Institute of New South Wales (REINSW) has explored the prospect of giving tax incentives for retirees to downsize. Former REINSW President Malcolm Gunning has said that the organisation has been pushing for the government to implement a stamp duty concession for senior people should they move to a smaller home. This could come in the form of broadening the senior citizen transfer stamp duty exemption by reducing the minimum age to 55 years.
“We believe in supporting older Australians on the purchase of a smaller house on the basis that it frees up large homes that are being under-utilised,” Mr Gunning said.
Many retirees may still be living in family-sized homes that have previously been occupied by themselves and their family. However, as kids start growing up and flying from the nest, it leaves many older people in homes that are larger than they need to be. Policies that will incentivise downsizing for these people could allow these homes to be put on the market and occupied by larger families.
This will benefit anyone after a Customs Bank home loan, as it’ll help to boost affordability and better utilise existing infrastructure.
So, whether you’re thinking of downsizing yourself or after a larger family home, lending professional at Customs Bank who can ensure you find the right loan for your property journey.