Stamp Duty standing in the way

June 29, 2012 Leave a comment

Stamp Duty Property NSW and AustraliaSupport for the Prime Minister, Julia Gillard, has come from an unusual source today from the local member of First National Real Estate, Mark Millington, who agrees with her call for the review of state based property taxes.

“It is a rare thing for me to say I agree with the Prime Minister, but I believe she has it entirely right when she says State Government based property taxes are standing in the way of economic growth in this country,” Mark Millington said.

“As Australia’s largest independent real estate network, we do everything we can to help people with workforce and lifestyle driven mobility,” Mark Millington says “but the State Governments are not doing anything to help – a fact we have been on the record as raising on numerous occasions over the last 12 to 18 months.”

Mark Millington said research has shown that a lot of city dwellers would like to make a move to the country, but find the costs of selling and buying a home, including stamp duty, prohibitive.

“There is certainly a high level of interest in people moving within a state and possibly even between states for lifestyle reasons”,  Mark Millington said.

“The main thing standing in their way is the cost of buying and selling a home and stamp duty is a large part of that cost,” Mark Millington said. “So, on the one hand State Governments want people to move within their State and the Federal Government needs them to be able to move between states, but the State Governments’ stamp duty is one of the major costs that is stopping that happening.”

Last year, stamp duty accounted for 37% of total property related taxes in Australia and Mark Millington believes the reliance of Governments on property taxes is standing in the way of Australia’s economic growth.

“We need to stop penalizing people who have saved enough money to buy a house or who are prepared to follow job opportunities interstate.  Stamp duty is an anti-growth tax, and is a lazy way for governments to keep their budgets in check,” Mark Millington said.

Issued by: First National Real Estate Lakeshores

For further information contact:

Mark Millington, Principal, First National Real Estate Lakeshores, on 0418 970 591

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LEND A HAND FOR RENTERS

November 23, 2011 Leave a comment

Mark Millington principal of First National Real Estate Lakeshores says government needs to do more to support renters and provide better assistance than is currently offered through the National Rental Affordability Scheme (NRAS).

“While we support NRAS, it is no longer enough in its existing form, to meet rising rents, leaving those most in need of assistance flailing in their efforts to make ends meet,” Mark Millington said.

“It could soon be the case that with falling house prices, lower interest rates and reduced consumer confidence, purchasing a home will make more economic sense for those doing it tough, where the monthly mortgage is not too far off what they are paying for rent.”

According to Mark Millington, evidence of improving housing affordability can be garnered through recent home value index results.

“Home values recently posted the best results in seven months and the recent cuts to interest rates, along with talk there may be even further drops, is resulting in NRAS losing some of its validity as an assistance package, especially for those who are finding it difficult to come up with the rent each week or month,” Mark Millington said.

“What the government needs to do is look at changing NRAS so it has more relevance and achieves what it set out to do, or consider other forms of assistance such as bringing back some of the grants and other incentives that were obviously phased out too soon.”

Mark Millington said although it is good news for the property market that home buyer activity is increasing as a result of the market conditions, it is not good when it is done at the expense of those renters who can least afford it.

“It is always encouraging to hear that more people are realising their dreams of home ownership, but there also exists the reality that there are those in our community who are forced into rental accommodation and can ill afford to fall behind in any way at all in keeping pace with rental increases,” Mark Millington said.

“In these situations, they need access to assistance schemes that meet their circumstances and offer real assistance, which NRAS initially did, but has since failed to recognise the growing demand of assistance required, making it virtually obsolete.

“We don’t see property market conditions altering too dramatically in the near future, and certainly not to the extent that they will improve the situation for struggling renters.”

For further information contact Mark Millington, on 02 4359 1555 or 0418 970 591.

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Child-proof your Home

April 7, 2010 Leave a comment

Children are always at risk of injury, but never more so than in the family home.  According to Mark Millington from First National Real Estate Lakeshores there are many simple measures that can be taken to prevent simple accidents, often with far-reaching and serious long-term effects, from occurring in the home.

“It’s a simple case of taking a critical view of objects around your home and understanding where the potentials for hazards are,” Mark Millington said.

“Take the time to get down and crawl around the home so that you can see for yourself where curious hands and adventurous spirits might roam.”

While childproofing the home is important for families, investors should also take the time to understand how child-friendly their investment property is, as it may represent a marketing point for their investment property.

Injuries are the leading cause of death in Australian children aged one to fourteen, accounting for nearly half of all deaths in this age group.  More children die from injury than of cancer, asthma and infectious diseases combined.

Unintentional injuries make up around 95 per cent of all child injury deaths, with young children under the age of five years most at risk of unintentional injury.

“The most common place for young children to be injured is in their own home, so ensuring the safety of our homes should be paramount for parents to keep their children safe,” Mark Millington said.

“There are so many things that are precariously balanced, just waiting to be pulled down, knocked over, bumped into or climbed on.

“And as the child becomes more mobile and dexterous, they love to put things in their mouths and they don’t discriminate between toxics or poisons and lollies or biscuits.”

First National Lakeshores has produced a Tip Sheet to assist parents, and investors, create a safe environment in the home for children to thrive and grow.  A version can be downloaded from the First National Lakeshores website www.lakeshores.com.au or click here.

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CAN RENTING BE BETTER THAN BUYING?

March 26, 2010 Leave a comment

Current market conditions, coupled with growing concerns over housing affordability, are causing uncertainty for home buyers who are wondering whether they should continue to rent or commit to buying their own home.

Mark Millington, Principal from First National Real Estate Lakeshores says it all comes down to what suits the individual’s personal and financial situation best.

“With property prices and interest rates continuing to increase, mortgage repayments are beginning to be beyond the reach of many young Australians,” Mark said.

“But they shouldn’t panic.  Renting offers great flexibility with the option to relocate from home to home and area to area as the need arises, which is not the case with buying a property.

“If finances get tight, or the home situation changes for any reason, it is far harder to just pick up and go if you own your own home.

“Renting is also often a cheaper alternative to buying, especially in the inner city areas particularly favoured by Gen Y-ers who want that urban lifestyle close to where they work.”

While the housing supply and demand equation will continue to put pressure on vacancy rates, the fact remains that monthly rental payments will usually be less than a mortgage repayment for a comparable property.

“One of the greatest advantages of renting is that maintenance costs, repairs, rates and insurance bills are the responsibility of the property owner, and not the renter,” Mark said.

Despite these many advantages of renting a property, there are some disadvantages which will make buying preferable.  The most obvious one being that when you rent, you can never really put your own personal stamp on the property or make it reflect your individual style and design preferences.

“There is also the inconvenience, and in some cases pressure, of knowing your landlord can inspect the property whenever he/she wishes (providing they give sufficient notice) invading your privacy and peace of mind,” Mark said.

“But the biggest disadvantage is that you will never pay the property off, as you do with your own home.  You will always have to pay rent and therefore the money is lost for good, without any chance of recuperating it in the sale of a property.”

Ultimately, this is where the biggest difference is between renting and buying.  An individual needs to consider which will make the greatest impact on their personal net wealth and cashflow over their lifetime. 

“Usually, this will be purchasing a home, but it will come down to making sure you buy well and that you buy right,” Mark said.

“This is where the advice and assistance of a real estate agent comes into its own.  We have the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities and it is what we pride ourselves on. Despite the end of the boost to the First Home Owners Grant, it’s important to remember that the First Home Owners Grant still exists as well as many additional state Government financial incentives.

“So home buyers need to learn to make the most of the services we have available, so that they can make the most of their finances over the long term. There are many creative ways in which home buyers are saving for that first purchase whilst renting and we can help explain the options available.”

Filed under Media Releases, Opinion, Q&A Tagged with , , , ,

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