Friday, June 3, 2011

How Government Could Expand Home Ownership

If there’s one thing apparent to all, it’s that home ownership numbers need to be boosted. The rental market is getting crowded, vacancy rates are falling, and the housing market needs a stimulus.

So here is an idea that bears thinking about. Why not allow first home buyers to be investors as well as owner occupiers? In other means, instead of requiring all first home buyers to move straight into their homes for at least the first 12 months, let them take renters on who could assist them with the mortgage?

This would allow young buyers to stay at home, while giving their parents a chance to fund their deposit and not see them under financial duress.

They could rent out their properties and build up enough savings that in 3-5 years time would allow them to take over the property itself and become true owner- occupiers.

They could even keep their tenants and use their first purchase as a stepping stone to secure a second property. This would put an extra accommodation into the national rent pool. Collectively, the first home buyers group would greatly expand and the Federal Government would save itself millions of dollars in housing subsidies in the meantime.

This plan would not only encourage home ownership, but it would also allow parents to participate in securing their offspring’s future.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles anytime on 0418 517 525.

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