Home » News » The 2021 Federal Budget: What does it mean for the property market & First Home Buyers?
14 May, 2021
The 2021 Federal Budget: What does it mean for the property market & First Home Buyers?
Each year, the release of the Australian Federal Budget has the entire country listening closely. So what’s the hype? Why do people care? Prepared by the Treasurer (currently Josh Frydenberg) and presented to Parliament for debate and approval, the Federal Budget impacts Australia as a whole – people living here, tourists, overseas investors and basically anyone with an interest in Australia.
Addressing topics such as business, jobs, households and health, the Federal Budget shows how tax revenue will be collected or raised and how it will be spent. The manner in which these activities take place can either work in your favour or be a downside, depending on your situation. For example, whether you’re a business owner, working mum, retiree or farmer. We focus on how the 2021 Federal Budget decisions will impact the residential property market sector.
What’s in store for the Residential Property Market in the 2021 Budget?
In short, the federal government is planning to spend big to boost business productivity, jobs and to drive the economy’s recovery post-pandemic. Although the community and economy will benefit from the “cash splash”, the Australian economy will not see a surplus just yet. First Home Buyers, single parents and new builds should benefit from the budget proposal in particular.
First Home Buyers
The government has budgeted two “measures [that] are designed to give first home buyers a leg up into the booming property market” and incentivise spending on property, further stimulating our economy:
Extension of the First Home Super Saver Scheme
First home buyers can use up to $50,000 from their Super for a deposit!
Since the 2017-2018 budget, Australians have been able to contribute up to $30,000 from their super fund to use for a deposit when purchasing their first home. The 2021 budget allows for this amount to be extended to $50,000, further reducing pressure on First Home Buyers who are growingly concerned about housing affordability.
2. Extending the First Home Loan Deposit Scheme (New Home Guarantee) for FY 2021/2022
10,000 new places in the First Home Loan Deposit Scheme!
The New Home Guarantee allows First Home Buyers to purchase their first home with a 5% deposit. The 2021 Budget determined an addition of 10,000 spots, creating more opportunities for First Home Buyers. This helps combat the housing affordability issue and could lead to an increase of First Home Buyer transactions in the future, as the Scheme relieves the pressure and time of saving up to a 20% deposit. Simon Basheer, The Urban Development Institute of Australia’s National President, agrees “The allocation of an additional 10,000 places exclusively geared towards new housing construction recognises that saving for a deposit is one of the biggest barriers to home ownership”
CoreLogic’s Head of Research, Eliza Owen, comments “While there is evidence to suggest first home buyers prefer established housing, incentives designed specifically for the purchase of new property have been successful in funneling new demand into new builds…creating seemingly easier access to home ownership, as well as generating economic activity in the construction sector”
Under the 2021 Federal Budget, the government announced the establishment of a new program – the Family Home Guarantee. This “provides eligible single parents with dependents the opportunity to build a new home or purchase an existing home with a deposit of 2 percent, subject to the individual’s ability to service a home loan” There will be 10,000 places made available over four financial years.
How will Infrastructure, Roads & Rail Budget Decisions Impact the Property Sector?
The Urban Developer’s exclusive editorial desk claims “A huge emphasis on infrastructure spending is set to buoy property development…” with a “$15.2 billion boost” to the Federal Government’s “10-year infrastructure plan”
Infrastructure Sustainability Council of Australia’s CEO believes “Assessing infrastructure assets against social, cultural, environmental and economic performance metrics drives continuous improvement, capacity building, and innovation. It can support productivity and livability in both urban and regional areas”.
In short, the budgeted spend on infrastructure will positively impact the residential property market by enhancing areas, making them more desirable to reside in. For example, road and rail upgrades and accessibility to amenities improves convenience and could potentially increase the value of your property.
Let St Trinity guide you on how the 2021 Federal Budget could positively affect you as a First Home Buyer or Single Parent. Contact us on 02 9099 3412 or enquire below.
St Trinity Property Group and its affiliated entities, representatives, agents and related companies (collectively referred to as ST TRINITY PROPERTY GROUP) respect the privacy and security of your Personal Information, as defined below, and comply with the requirements of the Australian Privacy Principles under the Privacy Act 1988 (Cth).
WHAT PERSONAL INFORMATION DO WE COLLECT AND HOLD?
Under the Act Personal Information is defined as information or an opinion about an identified individual, or an individual that is reasonably identifiable, in whatever form and regardless of whether it is true or not (Personal Information). The Act also defines a subset of Personal Information as sensitive information (for example health records, racial or ethnic origin, religious beliefs, criminal records).
The types of Personal Information we collect and hold will depend on the circumstances of collection and on the type of service we are providing. For example, when we are engaged to sell a property, we may collect and hold Personal Information from both the seller and potential buyers such as name, address, email address, telephone numbers, employment details and details about their business.
HOW WE COLLECT PERSONAL INFORMATION
We may collect Personal Information about you directly when you deal with us over the telephone, send us correspondence (whether by letter, fax or email), have contact with us in person, visit our websites or complete hard copy or online forms.
There are also circumstances where we may collect Personal Information about you from someone else. For example, from:
• Market research companies contracted by us to obtain information so that we may improve and market our services;
• Your employer;
• Other agents and valuers who may be involved in the services we provide;
• Property developers who contract us to market properties;
• Publicly available information and databases;
• Any of the companies within the St Trinity Property Group (both local and overseas);
• and Anyone you have authorised to deal with us on your behalf.
We also automatically collect certain information when you visit our websites or our subscribers receive promotional emails from us via cookies and other tracking technology (such as web beacons), some of which may be capable of personally identifying you. Such information includes the type of browser and operating system you are using, your IP address and how you use our websites.
WHY WE COLLECT, HOLD AND USE PERSONAL INFORMATION
We generally collect, hold and use your Personal Information for the purposes for which it is provided to us (which will usually be obvious at the time of collection), related purposes or as permitted or required by law. Such purposes may include:
• Acting as agent for vendors or purchasers in relation to the sale of a property;
• Acting as agent for owners or tenants in relation to the leasing and or valuation of a property;
• Project management services;
• Structured advisory services;
• Town planning services;
• Capital allowances services and other consulting services in relation to the property market;
• Administration of our business, such as collection of overdue commissions or outstanding fees;
• Responding to client enquiries and communicating with you from time to time to maintain contact and keep you updated on the services you have requested;
• Forecasting future needs of our services and general quality assurance and training purposes;
• Engaging in legal proceedings and/or enforcing judgments and/or orders;
• Complying with the applicable legal or regulatory requirements and/or orders of competent authorities;
• Providing you with promotional and marketing information, including market research reports, newsletters, event invitations and/or property market information relating to our products and services which we think may be of interest to you; and Any other purpose identified at the time of collecting your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION
We may disclose your Personal Information to third parties as may be necessary for any of the purposes stated in the above section. Such third parties generally include:
Our third party providers, contractors, consultants, agents and/or representatives (such as law firms, banks, financial institutions, insurers, IT providers, mortgage referral services providers and/or wealth management services providers) who provide services to us or on our behalf, including to:
• Conduct valuations;
• Assist with obtaining payment from creditors;
• Operate data centres;
• Conduct market research;
• Provide advice;
• Potential buyers, tenants, conjunctional real estate agents and brokers for the purpose for which the information was collected or for related purposes (for example to complete a transaction on your behalf or provide you with a service that you requested); Anyone you have authorised to deal with us on your behalf;
• Any of the companies within the St Trinity Property Group and their related companies; Government authorities, regulatory bodies, law enforcement agencies, courts, tribunals and/or parties to the legal proceedings where you have consented to this or we are required or authorised to do so by law;
• Debt collection agencies; and/or Any other third parties identified at the time of collection of your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION OVERSEAS
Some of the third parties listed above to whom we may disclose your Personal Information are located overseas. For example:
Our information technology and business process service providers that are located in countries including (but not limited to) the Indonesia, India and Philippines; and Our overseas clients that are located in the same countries as the companies within the St Trinity Property Group.
However you acknowledge that, by agreeing to the disclosure of your Personal Information to these entities outside of Australia, we will no longer be required to take reasonable steps to ensure the overseas recipient’s compliance with the Australian privacy law in relation to your Personal Information and we will not be liable to you for any breach of the Australian privacy law by these overseas recipients. On this basis, you consent to such disclosure.
ACCESS, UPDATE AND CORRECTION OF PERSONAL INFORMATION
We take reasonable steps to ensure that the Personal Information we hold about you is accurate, complete and up-to-date. However, we also rely on you to advise us of any changes to your Personal Information. If you are able to access your Personal Information by logging on to an account you have with us, it is your responsibility to ensure your information is accurate, complete, relevant and up-to-date.
On request we will provide you with access to the Personal Information we hold about you, including for the purpose of correcting or updating that information, unless otherwise required or permitted by law.
There is no charge for making the request or giving the access to your Personal Information. We will deal with your request within a reasonable period after the request is made.
If we refuse to provide you with access we will provide you with a written notice that, at a minimum, outlines reasons for the refusal and the complaints mechanisms available to you.
If you wish to access the Personal Information we hold about you or to update or correct it, you can either do so by logging on to your account (if you have one) or contact us using the contact details provided below. We will require you to verify your identity and specify what information you require.
SECURITY OF PERSONAL INFORMATION
We take reasonable steps to protect any Personal Information that we hold from misuse, interference and loss and from unauthorised access, alteration and disclosure. For example, we implement IT security procedures including password protection, firewalls and site monitoring and we store your Personal Information on a secure server.we store your Personal Information on a secure server.
However, data protection measures are never completely secure and, despite the measures we have put in place, we cannot guarantee the security of your Personal Information. You must take care to protect your Personal Information (for example, by protecting any usernames and passwords). You should notify us as soon as possible if you become aware of any security breaches.
When you register as a member on our websites, you will be given a choice as to whether you want to receive e-mail messages from us, including newsletters, announcements and e-mail communications about our latest news, products or services. To the extent the relevant local law requires us to seek your consent, we will only send such messages to you if you opt-in. If you do not wish to receive direct marketing calls or materials, you may use the unsubscribe facility in the marketing communication or contact our Chief Privacy Officer using the channels prescribed below. Further, as a registered member with us, you can modify your choice at any time by accessing your registered account with us. We will stop using your Personal Information for direct marketing if you so request.
PRIVACY ON OUR WEBSITES
WHAT IF YOU HAVE A COMPLAINT?
PRIVACY & SITE CHANGES
OUR CONTACT DETAILS
• St Trinity Property Group
• Chief Privacy Officer