Passionate, energetic and extremely focused, Amber Werchon is one of Australia’s highest sales achievers. She has sold over $54 million dollars worth of property, was the youngest person to ever receive the REIQ Salesperson of the Year from 2005 to 2007, and has recently established her own agency, Amber Werchon Property.

Good news in federal budget

June 2 | Amber Werchon

The federal budget was delivered on Tuesday May 13and has received quite a lot of positive press from financial commentators, heralded as a fiscally responsible budget.

What does it mean for the real estate industry?

Well, time will tell, but on first glance, quite good news.

By showing a high level of spending restraint, the government is endeavouring to sow the seeds for a recovery, by dampening inflationary pressures, which will in turn loosen the squeeze on interest rates.

The government has made a very deliberate attempt to deliver a responsible budget; some sectors of the community may have felt disappointed, but looking at the bigger picture, inflation needs to be controlled - lower inflation will ease the burden on the family budget.

The government has also responded to the problems of home buyers with a veiled threat to the Reserve Bank, saying that as government is serious about fighting inflation, there is less need for any further increases in official interest rates.

There are a few things worth noting.

The First Home Saver Account Scheme: which offers a bonus of up to $850 to first home savers as well as income tax on earned interest capped at 15 per cent. This may well encourage more young people to save for a first home.

Housing Affordability Fund: this is an initiative to reduce housing costs, by providing $500 million in the next five years to removed red tape and solve other administrative problems with providing new housing.

National Rent Affordability Scheme: formulated to offer incentives to investors who provide properties at reduced rents. It will provide incentives of up to $8,000 per annum for new dwellings which investors offer to lease at 20 per cent below market rents.

Whatever political persuasion you may be, it is reassuring to note that the government of the day is attempting to implement policies aimed at controlling inflation.

It may take a while for the benefits to be felt, but if inflation is successfully controlled, then we may at last feel a reprieve from current and future interest rate pain.