Gladstone house prices tipped to rise because of budget
GLADSTONE housing prices will rise on the back of the Federal Budget, a major residential property investor says.
Property Club owner Kevin Young said the budget had done nothing to address housing supply issues, and that would drive up prices by as much as 20% in some areas of Australia.
"For areas like Gladstone the budget offers certainty and long-term stability for ongoing growth in the property sector," Mr Young said.
"But like every area of Australia, Gladstone has an affordable housing under-supply problem and the budget has not addressed this.
"I am glad that the Commonwealth resisted the temptation to interfere with negative gearing because the property industry can be at the forefront of leading Australia to new levels of economic growth.
"But it is also disappointing that ideas like a two-year moratorium on the GST on new houses to address affordable housing under-supply issues were not taken up."
Mr Young said the long-term stability for debt reduction offered in the budget should encourage the Reserve Bank to provide long-term interest rates stability.
He said the Reserve Bank had failed miserably to offer stability in interest rate policy and to enforce the banks to pass on cuts in interest rates.
"The Reserve Bank needs to make clear that any further interest rate rises are off the agenda," Mr Young said.