NSW Budget’s Have Short-Term And Long-Term Consequences

It’s taken a few days for the immediate impact of the NSW budget housing initiatives to sink in.

The initial headlines exulted Treasurer Mike Baird’s decisions.

But there are emerging short-term humps – through the creation of needlessly complex artificial deadlines – for the NSW housing and property industries to overcome.

And then some serious long-term consequences that could potentially effect residential property across Australia.

Veteran NSW unit builder Harry Triguboff has cottoned on that changes announced by the NSW government to home buyer incentives are set to create short-term distortions especially between July 1 and October 1.

Nothing will happen,ù he told the Australian Financial Review.

The government will have killed the investors and still not given birth to the first-home buyers.ù

But between now and July 1 when it comes to investors Triguboff says: we have to go hell-for-leather to sell before July 1 to investors, because they’ll still get something.ù

Three months then elapses before the October 1 start of the full $32,450 generosity of the new first-home owners’ grant and stamp duty concessions.

For the [interim] months, it’s going to be hopeless,ù Triguboff says.

I cannot enter into an agreement and say we’ll exchange it after October; it’s illegal. I would defeat the purpose of what the government is doing.