What does the Budget need to do for real estate?

What does the Budget need to do for real estate?

By Hercules Argyros on May 11 2017

The Turnbull Government says affordable housing will be a key part of the May Budget, so what policies are property experts hoping to see?

Realestate.com.au spoke with LJ Hooker's Head of Research Mathew Tiller and REA Group Chief Economist Nerida Conisbee to see what issues and measures were on their wish lists.

Different solutions for different housing markets

The Federal Budget tends to include policies that are easy to administer, as the measures
are exactly the same in each state and territory, but this approach ignores market realities,
said Ms Conisbee.

"Whatever they do with regards to housing, it’s making sure they are mindful that we are
running very different speed housing markets across Australia - it's not just about
overheated Sydney and Melbourne," she said.

Boosting economic activity in regional areas

The Government should be looking at ways to encourage businesses to move out of major
cities, and as an employer it should also relocate its own offices to rural and regional areas,
said Mr Tiller. 

"On the demand side, really the best solution is the push for the decentralisation or
regionalisation of jobs, out of capital cities. So promoting our regional centres and increasing
infrastructure spending in our regional centres and trying to drive jobs growth in those major
regional centres, is very important" he said.

Encourage older Aussies to sell the family home

The supply side of the housing affordability debate tends to focus on construction levels for
new homes, but more could be done to help baby boomers sell the family home.

"Probably the biggest one here is assisting retirees or the older generation to downsize from
the family home into more suitable accommodation for the lifestyle that they’re going to take
forward into retirement," said Mr Tiller. 

 "Whether that’s adjusting superannuation caps, asset tests or pension 
eligibility - they really need to provide some measures around helping people move and
relocate to suit their lifestyle and change in needs."