SA budget - Resource boost for the state
South Australia is set to benefit from a significant resource boost, which may encourage those considering taking out a home mortgage in the state.
Buying property for personal use or as an investment requires careful thought, including an evaluation of the future economic prospects of an area.
Better opportunities and stronger infrastructure may help drive up demand for real estate in certain areas, potentially leading to consistent capital growth, which is sure to please property owners.
The 2014-15 SA budget promises a $4 million top-up over four years to expand the Plan for Accelerated Exploration Scheme, Treasurer Tom Koutsantonis noted in a June 16 statement.
Otherwise known as the PACE initiative, the scheme is a key driver of state mining production, helping boost the state's competitive advantage.
While SA is certainly committed to boosting one of its most significant sectors in order to lift the economic wellbeing of the entire state, the budget wasn't all good news, according to some commentators.
For instance, all property owners will need to pay the full Emergency Service Levy thanks to the removal of the government concession. The exception to this is that the concession will remain in place for pensioners, Housing Industry Association (HIA) Executive Director for South Australia Robert Harding explained in a June 19 statement.
Mr Harding has called this an "additional burden" that could hinder an uplift in the construction industry's home building sector. Coupled with land tax and stamp duty, the effect could compound and lead to unfavourable results.
Of course, such a burden may hit homeowners but also offer opportunities for property investors.
Mr Harding acknowledged positives in the budget, such as the retention of the state component of the First Home Owners Grant scheme.
Stamp duty concessions for inner-city apartments are being held onto, which is another plus, according to Mr Harding.
While there are ups and downs in the budget, both homeowners and investors will find an aspect that could benefit them.
Image credit: Les Haines