HOUSING affordability is a key theme of this year’s federal budget, but while politicians debate winding back negative gearing and encouraging the supply of new homes, younger buyers are faced with long delays in reform; so can Jimboomba locals access affordable homes to purchase?
According to Australian Bureau of Statistics data from 2014-2016, the median age of Logan City residents was 33.9 years and the median property price was $365,000.
That’s younger than neighbouring council areas by a decade, yet domain.com.au trends reveal a whopping 62 per cent of Jimboomba home owners are in the process of purchasing their properties.
Getting a foothold
“It is not easy for young families to get a foothold in the area unless they have already owned a property and it is their second time around,” Robbie Drew, principal of Harcourts Jimboomba said.
“Or they are first home buyers, in which case they can only buy new or house-and-land packages to be eligible for the first home owners’ grant.”
Even then, they need a good credit rating and they must be an Australian citizen or permanent resident (or applying with someone who is), according to Ms Drew.
“They or their spouse must not have previously owned property in Australia. They must be at least 18 years of age and they must be buying or building a brand new home, valued under $750,000.
“The second incentive for first home owners is that they are exempt from stamp duty up to the value of $550,000,” she said.
Dire consequences
“Investors are attracted to properties that will give them a good capital gain, and also homes that they can claim maximum depreciation on,” Ms Drew said.
“With homes built after 1985, they can claim building allowance and plant and equipment. With homes built before that date, only plant and equipment can be claimed, but would still be worthwhile.
“We have investors buying acreage as well as residential for long-term investment.
“Usually investors buying at auction are only willing to pay the minimum. There is a lot of competition for well-priced properties so they are not always successful,” she said.
According to Ms Drew, winding back negative gearing would be “an absolute disaster”.
“The investors would stop buying, the rental market would dry up immediately and the rents would go up accordingly. It has happened before with dire consequences and that would happen again,” she said.
Infrastructure demands
While the first home buyer’s grant is offered, Ms Drew believes the supply of new homes will continue.
“What they need to look seriously at is the infrastructure for the highway and roads to service the increased development,” she said.
“This state government seems to have no idea of what is needed to service these new housing developments but keeps increasing the capacity anyway.”
