Leading home expert, Craig Gemmill says recent changes to the Western Australian housing market will allow the real estate sector to grow.
The WA Government has made crucial changes to the state’s Keystart loan scheme, setting new income limits – with eligibility for singles increasing from $90,000 to $105,000 and couples from $115,000 to $130,000.
The Morrison Government has also touted a five percent deposit initiative for first home buyers, to fix national housing affordability issues.
Managing director of Gemmill Homes, Craig Gemmill believes the changes allow the state to realise its potential, with this period a great opportunity for home buyers.
“When we were talking about green-shoots 12 to 18 months ago, we were probably being a bit premature or optimistic,” says Gemmill.
“But now, not only do we have green-shoots, we have a bit of fertiliser to put on the lawn too. These changes will create awareness and instil confidence in the real estate market.
“I feel WA is on the bottom, house prices have gone back to where they were in 2006 – so I think it’s a good time to buy.
“You just need to look at the realities here in Western Australia. WA has gone from seven percent to 2.3 percent vacancy rates. There’s $70 billion of mining work, $20 billion of which has already started.
“All the signs are there of a real rebound. The upside outweighs any concern around negative equity. These changes will help WA bounce back again.”
Gemmill says the added assistance will have an immediate impact on the real estate industry and ease the housing affordability issues crippling those looking to enter the property market.
“In the past, fly-in fly-out workers and double income workers were ineligible for Keystart and had to go to a bank, and the banks then wanted a 20 percent deposit, which they couldn’t raise.
“By increasing the income limits, it allows these people, who are working hard to get into a new home, to actually do it.
“This policy is not aimed at dentists, doctors and lawyers. This is for hard working Australians doing it tough. It is a massive help to those who need it.
“Also, by ensuring first home buyers only need a five percent deposit, it removes the need for lenders mortgage insurance, [which] has been locking people out of homes and out of the property market – but no longer.”
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