Treasurer Jim Chalmers has delivered Labor’s first federal budget in almost a decade, in which he emphasised the government was making “hard decisions for hard times.”
But despite this, there was one eye-catching announcement for Australia’s real estate industry: a new National Housing Accord, which sets an ‘aspirational’ target of building one million, well-located homes over five years starting from mid-2024.
The National Housing Accord
The National Housing Accord is a landmark agreement between all levels of government and the private sector, including superannuation funds and the construction industry.
Together, they want to boost housing supply and improve housing affordability by building the aforementioned one million homes.
Naturally, the devil is in the detail, with most of the supply needing to come from the market, not the government. The federal budget provides only $350 million in federal funds over five years to deliver 10,000 new homes.
That’s in addition to the existing election commitment to build 30,000 new social and affordable housing dwellings through the Housing Australia Future Fund.
State and territory governments have committed to building 10,000 new affordable homes, alongside improving zoning and planning regulations and land release for social and affordable housing.
Real Estate Institute of Australia president Hayden Groves welcomed the ambitious target and applauded the federal government for making housing supply the centrepiece of the budget.
“REIA has long called for a plan to increase housing supply in a real way with proper targets that holds state and territories accountable and deals with the key barriers in land release, planning and that is pro-investment for the private property markets,” he said.
“Done right, this can give Australia’s housing stock the generational injection it so badly needs in the same way policy programs in the 1970s did.”
Other housing measures in the budget
Aside from the National Housing Accord, the federal budget also included other commitments promised before the election:
- The Housing Australia Future Fund – a $10 billion fund to help build 30,000 new social and affordable housing properties
- Help to Buy – the federal government’s shared-equity scheme to help home buyers with both the size of their deposit and their repayments
- Regional First Home Buyer Guarantee – the government’s guarantee scheme to help regional Australians buy a property with a smaller deposit
- Downsizer super scheme expansion – lowering the minimum eligibility age for downsizer super contributions from 60 to 55 years
How NMC Finance helps homebuyers
Buying a property can be an overwhelming prospect at the best of times, given that it’s one of the biggest financial commitments you’ll make in your life.
But it’s probably even more daunting in the wake of the Reserve Bank’s seven consecutive cash rate hikes, which have sent home loan interest rates upwards.
As a result, your potential repayments will have increased, while your borrowing power might have decreased.
That’s why choosing a great home loan that suits your financial circumstances and goals is vital.
But where do you start?
As an expert home loan broker, NMC Finance can help you navigate the complexities of Australia’s home finance marketplace, matching you to the right lender for your individual situation.
Need home finance or want to refinance your house loan? NMC Finance is an experienced home loan mortgage broker and can help. Contact Nathan Coad on 0498 766 639 or nathan.coad@nmcfinance.com.au to find out more.
* This blog is intended for general informational purposes only. For personalised advice tailored to your unique financial situation, please contact NMC Finance.
