Industry body calls for more help
The Real Estate Institute of New South Wales (REINSW) recently focussed its attention on two demographics it considers essential to Australia's housing industry: first home buyers and retirees.
In a June 13 media release, REINSW President Malcolm Gunning said the government must do more to support these groups, including reinstating the first home owner grant for existing properties and providing incentives for older Australians who may be looking to downsize from their current homes into smaller properties.
"It is important to support those who are investing in their first home, as well as retirees who are looking to downsize," Mr Gunning said.
"The government's approach to first homebuyers shows it is out of touch with the realities of the New South Wales property market. Restricting first homebuyers to new properties limits their options and choices, making it even more unaffordable for many to acquire a home."
Mr Gunning went on to say that giving retirees an attractive reason to downsize will benefit the market as a whole, as it will lead to more stock coming to market.
While a revamping of the first home owners grant would certainly come as welcome news for first-time buyers, current home loan rates in Australia are doing their part to enhance affordability.
Of course, while low interest rates are a boon to many home buyers, it's often the initial deposit that stands as an obstacle for first-timers.
Then again, current home loan rates make now an ideal time for older Australians to think about their futures and whether property investment may be the right choice for them.
Whether alone or as part of a self-managed super fund investment, today's affordable home loan environment can offer retirees a lucrative financial strategy for their post-work years.
Image credit: ginkgo2