Top 5: Finance & property quotes week commencing 30 March

By the resi financial blog team, 02 April 2015

Top 5: Finance & property quotes week commencing 30 March

Commentary in the housing and finance industry this week circled around the release of the federal government's Tax Discussion Paper, which has placed tax reform firmly on the table for 2016. Members of the real estate sector were especially vocal about this paper and welcomed the opportunity to put their two cents in. Here's a round up of what was said in the finance and property industries over the past week.

#1. The Real Estate Institute of Australia (REIA) has welcomed renewed discussion about the future of the country's tax system, particularly as it offers the chance to switch up stamp duty and GST. REIA President Neville Sanders said the debate is a solid step towards making the tax framework more suitable for Australians in the future.

"Australia's economy cannot continue without meaningful changes to the current tax structure as evidenced by the projections in the recently released Intergenerational Report, which showed that current policy settings are not sustainable in meeting increasing health and education outlays," Mr Sanders said in a March 30 release. 

#2. Master Builders of Australia have similarly applauded the discussion paper. In a March 30 statement, CEO Wilhelm Harnisch said the government should focus on how to improve living standards for all Australians, which means amending the current system to encourage investment, housing supply and affordability. 

"To improve the long term viability of the tax system, the tax discussion paper must focus first and foremost on the big picture which must necessarily include a thorough examination of what the future architecture of the GST may look like," said Mr Harnisch. 

#3. The Tax Discussion Paper also brought up some interesting points about negative gearing, which the Property Council of Australia has made their views quite clear on. Chief Executive Ken Morrison said the the government needs to base their decision on facts, not on popular opinion.

"Negative gearing is one of the most misrepresented and misunderstood parts of Australia's tax system," he said.

"The ability for low to middle income Australians to negatively gear their investments also unlocks an important source of finance for the supply of new housing stock, which benefits affordability in the rental market."

#4. In slightly different news, CoreLogic RP Data has released figures showing that Australians are owning their properties for much longer than a decade ago. After analysing house sold over 2014, the research shows that property owners held onto their house for 10.5 years on average, jumping up from 10.1 years a year earlier. 

"With the hold period continuing to trend higher at a national level and across all capital cities it is evident that home owners are moving less regularly than they have in the past," the report stated.

#5. The Australian Bureau of Statistics has released its building approval figures for January, which show numbers have improved on the previous month. The Housing Industry Association said this is another great step forward for the building and construction sector. 

"A steady pipeline of new homes represents the most effective solution to alleviating housing affordability pressures," said HIA Senior Economist Shane Garrett in an April 1 release. 

Categories: Home Loans, Property Investment