REIA demands change for first home buyers

78First home buyers and property investors are being backed by the Real Estate Institute of Australia’s (REIA) recent submissions to the Australian government.

The REIA made several points ahead of the preparation of the 2014/15 budget, which it released on January 31.

The submissions relate to housing affordability, which will certainly interest those trying to nudge their way into the booming Sydney property market.

However, should any of the changes be taken into account by the government, it could spell good news for buyers and investors.

“REIA’s 10 proposals are aimed at contributing to Australia’s continuing economic development and productivity”, noted REIA President Peter Bushby in the January 31 statement.

The institute is requesting a “marked improvement in the standards of delivery of vocational education and adequate data on the supply/demand imbalance of housing for informed decision making by policy makers and stakeholders.”

The 10 proposals made are pitched at boosting first home buyer numbers and housing affordability.

One proposal was aimed at states and territories, namely that they “uphold the initial intent of the Intergovernmental Agreement in Federal Financial Relations Schedule A, that assistance to first home buyers will be ‘uniform’ and that ‘an eligible home will be new or established'”.

The REIA has also suggested that stamp duty should be abolished and replaced with “an efficient source of revenue for states and territories”.

Further, it also suggested first home buyers should be able to access their superannuation for the purchase of a home. Currently, buyers can manage their own super however if they purchase an investment property they cannot live in it, nor can their relatives.

Investors may be interested by one of the proposals, which suggests not increasing Capital Gains Tax on property investments. This could give investors in the Sydney area more financial leverage when it comes to buying and selling homes in the area.

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