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ISCOVER
Staff Reporter
RE/MAX Australia’s Michael Davoren believes this month’s federal Budget will deliver very little to the home buyer, investor or seller.
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“I don’t think this Budget is going to be a pretty one,” Mr Davoren said.
According to Mr Davoren, the 2013/2014 Budget is unlikely to bring about a massive increase in employment, one of the greatest drivers in the property market.
“The real estate market is absolutely geared for a positive phase – almost all the ingredients are there,” he said. “The only thing missing is confidence, and the greatest factor stifling confidence is lack of employment opportunity and security.
“If a potential buyer has any doubt whatsoever about their employment prospects, they are not going to borrow, regardless of how low interest rates are. Even low we are still experiencing record lows, employment remains the big issue and I don’t think this Budget will help.”
Mr Davoren said neither this nor the next government can afford to threaten property rental supply by tinkering with negative gearing, which has been tried before with disastrous effects.
“Furthermore, unless the government steps up its role in providing affordable housing, incentive needs to be given to individuals and self-managed super funders to stay active in the investment market and help meet rental demand.”
