From assistive payments to major housing developments, the announcements of this year’s budget have implications for owners, buyers and investors alike in the short and long term.
The budget’s cost-of-living support for Western Australians include a $400 energy bill credit for every WA household, payments for school students and free public transport for school-aged children.
Realmark Licensee John Percudani said the effect of the 2024-25 State Budget’s cost-of-living measures on the disposable income and borrowing power of households would be minimal.
“Through our interactions with thousands of tenants and homeowners across both metropolitan and regional markets in WA, we are witnessing increasing stress in meeting elevated rental and housing costs,” he said.
“The impact will be modest, and the concern is more about the potential increase in interest rates and the costs of owning a property in WA.”
Mr Percudani said while any support was welcomed, the challenges in the residential property market were widespread.
“The budget actions will be beneficial, however the macro impacts of supply, interest rates, property on-costs and stamp duty are significant ongoing factors.” he said.
REIWA CEO Cath Hart said a takeaway for homeowners, investors and prospective sellers was the prospect of prolonged demand.
“The fundamentals of the WA economy remain strong, with Treasurer of WA Rita Saffioti forecasting the state is on track to reach 3 million people next financial year,” she said.
“This will drive ongoing demand for housing and see house prices continue to climb.
“We welcome the fact the State Government has opted for incentives to boost housing supply, rather than punitive measures, such as new taxes, as we’ve seen in other states.”
For the full article, see the Saturday 25 May edition of The West Real Estate.