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National Mortgage Brokers has called for governments to help first home buyers by removing the obstacles to new development.
Managing director Gerald Foley said one of the key reasons for the increase in property process is a lack of suitable housing, especially for first home buyers.
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“Attention must be given to simplify the process from greenfield developments to housing blocks,” Mr Foley said.
“It takes too long – and therefore much added cost – to get blocks of land available for sale, and state governments need to get quicker processes in place for land developers.”
Mr Foley said another way to increase housing supply would be to help bring more large, inner-suburban established homes on to the market.
However, that would involve the federal government allowing pensioners to downsize without placing their pension entitlements at risk, he added.
“If government were to exclude any ‘gap’ in sale proceeds from the sale of the family home to downsizing accommodation, this may encourage more to do so,” he said.
“As a result, inner suburbs could see more three-bedroom, two-bathroom-styled houses being available to younger buyers and families needing larger housing.”
Mr Foley said that would then open a market for developers to build more small, one-level units.
“It is too simplistic to tinker with one aspect of the property market whilst ignoring others,” he said.
“History shows us that when you address only one aspect – such as removing negative gearing – it just pushes the problem to another corner of the room.”
