The PROPERTY DOCTORS, Sydney Australia Novak Properties
NOVAK PROPERTIES CREW and PROPERTY LEGENDS in the industry share their experiences and knowledge. Hacks and tips to make you a smarter property GURU :) Learn with exclusive content, advice, insider info and HOT real estate industry PRO SECRETS. For sale, for lease, residential, commercial, buying off the plan, finance, mortgages, interest rates, first home buyer, investments - all topics covered. The untold real estate info you've been waiting for.
The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1385 - FEDERAL BUDGET UNCOVERED: WHY IT'S A GAME-CHANGER FOR REAL ESTATE!
What exactly is a federal budget and why should everyday Australians care about this one? Tonight's budget announcement promises significant changes that could reshape Australia's housing landscape, especially for those struggling to enter the property market.
At its core, this budget aims to win hearts with targeted measures addressing housing affordability. The most substantial change comes for first-home buyers through an enhanced shared equity scheme allowing eligible purchasers—particularly key workers—to enter the market with just a 2% deposit. The government will contribute up to 30% ownership for existing homes and 40% for new builds, with eligibility thresholds raised to $100,000 for singles and $160,000 for couples. Sydney buyers will celebrate the increased price threshold of $1.3 million, finally acknowledging the reality of the city's property values.
Housing supply constraints receive serious attention through a $49.3 million investment in modular housing—prefabricated homes that can be built 50% faster at potentially half the cost of traditional construction. This could deliver approximately 4.7 million new homes nationally. Add to this the $1.9 billion allocated for 40,000 new social and affordable homes, plus an additional billion dollars to states for housing projects, and we're seeing unprecedented government intervention in the housing market.
Renters haven't been forgotten, with specific funding for affordable housing initiatives, while investors should stay alert to Treasury's review of negative gearing rules. For all Australians, a $150 energy rebate aims to provide immediate cost-of-living relief. As one guest noted, "I only see this as a positive... They're trying to address key issues in the housing market—affordability, access to stock, and relieving pressure." Tune in tomorrow as we break down the official announcement and discuss what these changes might mean for your property journey whether you're buying, selling, investing, or renting.
Alright, so we've got the budget tonight, and how many people are going into this budget saying what is a budget? Don't really understand it. Let's talk about it, Stay tuned.
Speaker 2:I'm the ringleader, so what's?
Speaker 1:it like Good morning, the old man in a young man's body. Can you tell us what a budget is?
Speaker 2:By definition, a federal budget refers to the budget introduced by a government in an election year. Often designed to appeal to voters, these budgets typically aim to winning public support, such as tax cuts, cost of living relief, infrastructure spending, et cetera, et cetera.
Speaker 1:So it's a positive thing.
Speaker 2:It's supposed to be framed up that way, but there's five real takeaways that we're going to unpack this morning how it will impact real estate and why it's relevant to the everyday Aussie. Because it is big news, Like it's sometimes just one of those headlines that you see in the news going I don't really care, not really going to impact me, but this one will.
Speaker 1:So this is, and it's at a time when it's just pre-election, so they're going to really try to turn it on so we could have some good news tonight.
Speaker 2:Ladies and gentlemen, I think you're definitely expecting good news. Wow. What I want to know from an agent of 30 years is is does the federal budget stick in the calendar like a date where people get nervous or they stop doing things for a little bit, like other days in the year? Yeah a little bit.
Speaker 1:Not as much as rate rises or rate reductions. People don't hold their breath as much rate rises or rate reductions, people don't hold their breath as much. You know, like over the years it's been like a fart in the wind or it's been like oh my god, that's such good news for, uh, for real estate. Um, I've got a feeling we're gonna see them really try to turn it on and do and introduce some amazing stuff. So I think it's going to be good news, billy for them up for the property market all around.
Speaker 2:I know normally I know they always address it, but I've got a feeling this is going to be a couple of tears of goodness, sorry stages of goodness yeah, I've had a bit done, a bit of research and from from my research I see it's tailored a lot towards helping the entry-level price points and again a big focus on first-time ownership tell me more what we should expect.
Speaker 2:Billy the old man a young man's body so number one there's a big boost for first-home buyers. Um, there's new grants, but they've changed the shared equity scheme. So eligible first home buyers, specifically key workers, can get into their home with as little as a 2% deposit. So that's a massive, massive change. That's the help to buy scheme and it's where the government actually contributes part of the ownership up to 30% for existing homes, 40% for new homes. So that's a big change. Thresholds for those, for those eligible couples they've moved from a hundred thousand for a single oh sorry, they've been increased to a hundred thousand for a single and a hundred and sixty thousand for a couple, so that they're big changes. But also the price points they've increased the price points again for its eligible up to one point. Three million dollars for Sydney, because the problem here?
Speaker 1:yeah, the problem was for a lot of people was they couldn't like they.
Speaker 2:They earned too much money um to service to survive like make the eligibility, and the properties they wanted to buy were too expensive.
Speaker 1:So that's a big change that's good, so first-time buyers will be able to buy first homes in Sydney. Sounds logical.
Speaker 2:Sounds logical. Number two they're supercharging housing supply. There is a massive, massive budget allocated to modular housing, so it's like prefabricated, go modular.
Speaker 1:So it's $49.3 million um in pre-fabricated modular homes so the whole thing with modular, modular um that I thought is people don't really care if it's as long as they've got decent, like decent accommodation. They don't really care whether it's solid, um. So that whole modular thing, I think is pretty clever, because it's fast and it's cheap and people like it it's 50 percent um quicker cuts build time, I think.
Speaker 2:So that's probably 50 the cost as well probably 50% of the cost as well.
Speaker 1:Yeah, build a 2-3 better. It's in the backyard.
Speaker 2:Why not? Again? From my research, you could expect to see about 4.7 million of these nationally. That's a big number. It is a big number. Yeah, number three. There's a big number. Yeah, um, number three. Um, there's a. There's a real. There's a real um. Watch for it for inflation again.
Speaker 1:um, and you're gonna see energy relief is that george yank anything guy in the background? Yeah can you? Hear him he's like, it's like, he's, it's like he's. He's working on a building site.
Speaker 2:Well, there he is at the moment he is, he is um. Sorry about that, that's okay. But number three. So interest rates and inflation watch, but specifically um energy bill relief. There's gonna be 150 rebate, uh, for how they love that.
Speaker 1:They love putting that in. That must be really some they. It goes in every election yeah it's.
Speaker 2:You know it's big um number four tax and investment changes they're looking at negative gearing could change the investor landscape well making it better or worse, the Treasury is reviewing negative gearing rules. No immediate changes, but future policies may shift.
Speaker 1:Investors should stay prepared.
Speaker 2:It's good news for more housing, not? And then the support for renters, and again affordable homes. That seems to be the biggest thing. Affordability there's more homes, more help. $1.9 billion set aside for affordable housing, 40,000 new social and affordable homes funded. That's an extra billion dollars to states and housing projects. Massive, massive money yeah, wow.
Speaker 1:Well, there's the budget coming tonight, ladies and gentlemen. Uh, I guess the idea of the budget, from what billy's telling us, is to win people's hearts. So everyone should be pretty excited rather than scared, because normally the word budget is not a positive word. When you bring the word around budget it's like all right, but it's not like that at all tonight, and anything else you want to add, billy Bob.
Speaker 2:No, I'll do a quick summary for you. In summary first-home buyers bigger grants and deposit schemes. Investors possible tax changes on the horizon. And renters more funding and assistance available.
Speaker 1:And some modular housing.
Speaker 2:Yeah, look, I only see this as a bit of a positive, to be honest. They're trying to address key issues in the housing market, which, for a lot of people, seems to be affordability, access to stock, and relieving a lot of people seems to be affordability, access to stock and relieving a bit of pressure yeah, that's hot all right cool, we've wrapped that up in under 10 minutes.
Speaker 1:Very efficient this morning very efficient we'll see you on the other end tomorrow. And yeah, we, what did you?
Speaker 2:say Billy, I was going to say any questions, drop a message in here because you're covering this tonight. Are you Separate topic? Tune in no, no, okay, tomorrow morning, I'm sure yeah.
Speaker 1:If needed, breakdown.
Speaker 2:Yeah, you can do a breakdown. Yeah, sick, yeah, you'll break down. Yes, see, yeah, nice, okay, all right.
Speaker 1:Well, I'm fingers crossed. I've been excited about it.
Speaker 2:Yeah, yeah, all right, have a great day you too, there.