Related coverage:
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Wagga’s property market is likely to be affected by Victoria’s moves to make home ownership more affordable, prompting calls for a similar move in regional NSW.
The long-awaited reforms for first home buyers will include tax exemptions and a revolutionary program where the government buys a stake in the equity of the home, drastically reducing the cost.
The move is expected to affect Wagga’s residential property market, which often competes with Albury-Wodonga. However, Wagga real estate agent Simon Freemantle said similar stamp duty relief was needed for regional NSW.
“First home buyer numbers have been in significant decline compared to other sectors and stamp duty relief would be a great stimulus,” Mr Freemantle said.
“Local and state governments have to appreciate we’re in competition with our neighbours across the border like Wodonga and if we make it more difficult people will go elsewhere. Something needs to be done to help first home buyers get into the market.”
Another Victorian plan – one that would see the government buy a 25 per cent stake in new homes – has attracted the interest of Federal Treasurer Scott Morrison, who is expected to make housing affordability a key part of this year’s budget.
Wagga builder Peter Hurst said anything to stimulate the first home buyer market would be welcomed, but he pointed out there were easily obtainable homes in regional areas if they were willing to look for them.
“It’s easier to buy a small two or three bedroom home than a large one,” Mr Hurst said. “But look at prices – a $450,000 home in Wagga would be $1.6 million in Sydney but the difference in wages isn’t comparable.”
According to Mr Hurst, one of the biggest challenges in drawing people out of Sydney was a mindset that there was nothing on offer in regional areas.
“There’s a mass of people reproducing this same notion that you’ve got to be in the city,” he said. “Whereas people brought up in the country might go to the city for a while, but when it’s time to raise a family they know the benefits of living in a regional centre.”