The NSW Budget 2012 does nothing to increase ownership opportunity for new aspirants to the home ownership class, while instead providing further incentives for investors and multi unit owners to increase their asset base to the detriment of the struggling working population.
NSW Treasurer Baird’s plan to incentivise the construction of 76,000 new dwelling units will pr
ably do so. But the bulk of these homes will most likely be built by investors such as Harry Tribugoff’s Meriton
with a view to further exploiting the artificially housing stressed Sydney working population. There is al
so no disincentive to offshore buyers purchasing residential property. Changes to the First Home buyers grant mean that First Home buyers of basic homes can no longer look to the next generation of 1st home buyers to on-sell
their property to when upgrading.
Sydney Homeless see no merits in the residential housing roadmap for NSW as proposed by this Investor focussed budget. We see zero security for homeowner – occupiers and yet more incentives
for investors to capitalise at the expense of home occupiers.
Sydney Homeless have and continue to advocate for the removal of all government incentive
s for non-occupier housing investment and the implementation of punitive State based Stamp duties coupled with
increases in Federal Government taxes on rental income , curtail the negative gearing and depreciation regimes for investors, add residential property investment penalties and a ban on foreign investment in residential property for non residential purposes.The Federal Government might wish to make depreci
ion and negative gearing tax incentives available to occupying purchasers.There should be a Commonwealth based
Home Loans facility for home buyers which is underwritten by the Federal Government in place of current social housing expenditure. This combination will have the effect of lowering property values over the medium term while stimulating property ownership by occupiers, while disincentivising speculative investors. see ABC article on NSW Budget 2012 – Housing