The multi-billion dollar gas plant would play an important role in changing the real estate scenario in Darwin, the capital city of Northern Territory of Australia. Inpex, the Japanese gas company has publicized that it would build a LNG plant worth twelve billion dollars at Blaydin Point, Darwin in Western Australia. The announcement by Inpex has increased the rental rates in Darwin. It is stated that Darwin has the lowest unoccupied rates in the country standing around half a percent. It is anticipated that around two thousand jobs are likely to be created in the city alone. More jobs means more rentals required. This is going to increase the pressure on the real estate industry. The existing renter may have to pay higher rents to stick to their lodging. The situation is going to be tight during the next few months. The housing sector is expected to go through an all time high and the rental market would be pitched very tall. It is going to be more difficult to get an accommodation at Darwin in the months to come.

The new housing construction at Palmerston would help the growing demand for accommodation. These additional residential blocks could ease the problem to a greater extent. Purchasing a property at Darwin is going to be an almost impossible task unless you are willing to spend huge amount. It is warned not to enter the market now as the real estate industry is very hot now. Inpex has made Australia the second largest gas center in the world. The five hundred kilometer pipeline in Bayuundan gas field has increased the exports to around four hundred and fifty million dollars yearly.

The LNG project is given to the Japanese on a seventeen year contract basis. It is anticipated that the expansion could add ten million tones of gas per year. Inpex along with their French associates will start the primary work of the project at Darwin. The project was announced formally by Mr. Martin Ferguson, Minister for Federal Resources and Energy. He said the project would bring new epoch in the industrial expansion of the Northern Territory. He also called Australia as “the energy superpower” of the world.

The project as such is sure to raise the economic standards of the people of the Northern Territory. It brings more job opportunities to the people of Australia. Apart from the job industry, the housing sector also is expected to grow rapidly with the new project. Around eight million metric tones of LNG are expected to be produced by the gas plant by the year 2015. Housing affordability should be tackled at Darwin; otherwise the crisis may go out of control. The affordability is going down due to number of factors and the major among them is the new LNG project. The increase in interest rates has minimized the percentage of acquiring property in Northern Territory. The Federal Government should take necessary steps to address the housing needs of the people in Darwin to over come the crisis.

 

The state government of Queensland has abolished stamp duty on houses up to Five hundred thousand dollars in value. This abolishment of stamp duty will benefit the first buyers of home. The Treasurer of Queensland is of the view that the variation and the option of an administrator interest rate cut this week should bring in new life into the state's housing market. The Reserve Bank is likely to introduce the cut to interest rates for seven years soon. The housing market will have a big knock from the increasing interest rates.  This cut in the stamp duty and the new plan will be surely welcomed by the buyers as well as the sellers. It will be needful and will increase the sale of property and the property sector will be benefited an lot. The cut in stamp duty will also be greeted by industry.

The present scheme will make the buyers to come forward to buy a new house for their own. Because of the mortgage stress and the high interest rates and the burden on debts and loans there had been a set back of buying properties. Now because of the intervention of the government by abolishing the stamp duty many potential buyers will surely come forward to buy houses. This will in fact provide an affordability transom. The stamp duty cut will also help the sellers and builders to sell their property. The first house buyers will be the most benefited one. The sellers and builders can also find a good market value for the house property.

However some of them are of the view that due to abolishing of the stamp duty the sellers and the builders may increase the value of the property thus putting a burden on the buyers and the buyers may be put to hardship. If this is the situation buyers may not come forward to buy houses. Hence the economists feel that the state government should come to the rescue of the buyers and see that the value of the property is not much higher than the actual market rate. The interference of the state government will surely help the home buyers from facing any difficulties. Already the repayment of mortgage loan has become a curse to the people in the country. The mortgage stress and the high interest rates has made the people to just watch the daily market and situation instead of coming forward to invest on properties. The current abolishment of the stamp duty will surely be a boon to the buyers and all parts of the people. The federal government should appreciate the state government of Queensland for introducing the cut in stamp duty and the same has to be implemented in other parts of the country too.

Therefore the state government’s indulgence in abolishing the stamp duty has satisfied the public and all sectors will benefit from this. However it will be good if the Reserve Bank and the federal government take steps to reduce the interest rate at least to half a percent to benefit the people who are planning to buy a new house. This will also help the housing market to develop a lot.

Rent / own comparison is a must before deciding to buy a property. People offer a range of advice while buying a house. It is best to check for all possible provisions before opting to own a property. A house means equity and security. The earlier you buy a house, the more secure your future, but there are many intricacies involved. Rent / own comparison is necessary for all first time buyers. While buying a house it should be borne in mind to check the market trends. Before making a purchase analyse your cash position, see if you are on a strong footing. A steady cash flow is required to meet mortgage repayments, fire insurance, mortgage insurance, property tax, maintenance and other dues.

Rent / own comparison has to be made reasonably keeping in mind various factors. The cash flow options of both rent and own should be considered. After making the cash flow statement the one with more profit is considered a wise decision. The comparison is very complicated and there is no common answer to the question, as each case is different. Though, there is no generalized opinion, but still many people try to take a broad view of the situation which is not advisable. Conduct extension research before opting for a purchase. It is recommended to rent till your financial position is sound. Do not leap into a decision of buying a house just because loans are available. You have to repay loans timely or your house will be foreclosed upon. Analyse the housing market and the rental market to understand the current trends. The markets have seen a slow growth in the rentals since early 2008. The comparison is made generally by making a note of after-tax monthly payment and compares it with monthly rent.

Though, rent / own comparisons have their own advantages and disadvantages. Before deciding on rent or buy it is best to study the locality you are planning to rent or buy. Renting, seats you in an advantageous position over buying as you are free from debt. There is no worry of losing your house in case of defaulting mortgage payment. There is no need to maintain your house as the house owner takes care of all the repairs and maintenance work. Meaning you need not spend a single penny from your pocket towards the house. Advantages of owning a house are you can made necessary changes to the property, paint the walls or make changes as you may please. Equity is build in case of own property, the interest payment can be considered as forced savings. Even though buying a home means increasing your debt, but still once the debt is cleared you can treat it as an asset. Think that your rent payment goes towards paying mortgage and at the end of it you stand to gain a property. Once the property is all yours, your mortgage stops and you get extra money for other expenses. Always think twice before investing in a property, rent / own comparison can be highly beneficial if researched properly.

The rental property market in Australia is in a very sluggish form. If it has to be revitalized then the active participation of the government is needed. The first step the government can do is to abolish the stamp duty. This is a long standing demand of the Real Estate Institute (REI) of New South Wales. The state government had said that it would abolish the stamp duty if it was compensated for the revenue loss. The stamp duty on residential homes was almost thirty one percent of the state income in the last financial year. Not many rental homes are available in the Northern Rivers. The availability rate is among the lowest in the country according to Tim McKibbin of the institute. The old scale of stamp duty does not keep up with the current prices. Over the years it has been seen that the prices of houses have grown dramatically. The government must do something about the extraordinary bracket creep in stamp duty that has resulted from a strong market ensnared in a 25-year-old tax scale.

These stamp duty and land tax are preventing investments in the housing sector. These high taxes are big deterrents in people wanting to buy a home for the very first time. People would go and invest in other cash term investments when these taxes become a hurdle. Other investments don’t have any these kinds of obstructions to enter the market. t is the citizens of the state, especially the first time home buyers that are suffering because of the stamp duties and land taxes. When the tax and stamp duty figure becomes very big the first time home buyers find it very difficult to buy a house for the first of their choice. This in turn puts pressure on the rental market. reasurer Michael Costa has said that they would try to bring in reforms in the housing sector. These words of the Treasurer were welcomed by the Property Council of Australia. He has said that his government would support the abolition of the stamp duty as it would be a part of the Federal ‘root and branch’ reform review.

SW Executive Director Ken Morrison was of the opinion that as this stamp duty was one of the first taxes in the country, it is a positive step by government to support it. The Henry Tax Review showed that due to the stamp duty the house owners are stuck to their current property and this acts as a handbrake on economic activity. Abolition would mean that the revenue coming to the government would come down by a big margin. There has a mean to compensate the government of the huge loss. Abolishing the tax would stimulate activity which in turn would boost the Commonwealth Government’s tax take. he COAG need to concur on an implementation plan to make sure that this detrimental tax is phased out.

First home owners grant (FHOG) was introduced by the Australian Federal Government with the primary aim to make purchasing a home simpler. This scheme has immensely helped people to buy their first home. It is one of the major reasons for the increase in first time homes in Australia since its commencement in the year 2000 and was subsequently increased in October 2008. The grant depends on the lenders. It is advised to compare with different lenders. Due to the heavy competition, lenders now accept grants as down payment too. On the contrary, there are other lenders who offer lesser interest rates but do not allow grants. The grants may be used to pay stamp duty, insurance or even realtor fee.

In general, first time buyers are eligible for first home owners grant. The basic criteria for FHOG is,

• The buyer should be a citizen of Australia and must be an individual and not a corporation.
• The spouse should not own any property in Australia individually or jointly.
• It should be the first time the applicant receives a grant.
• This facility is available to owner occupant homes only, at least for a period of one year.
• The individual should not occupy a residential property for more than six months time after July 2000.
• The individual should be above 18 years of age while buying the property.
• The individual should occupy the house within one year of receiving the grant.

The Government of Australia has announced this grant for all applicants not considering their income bracket. No tax is levied on the grant and it is free from conveyance duty. The First home owners grant was launched on July 1, 2000. The scheme is very popular and is an on going plan; the end date is not yet mentioned. There are no restrictions on the property price. There are approved banks that cater to these grants. According to the FHOG a first time buyer will be paid seven thousand dollars as boost. A first time purchaser will receive an extra fourteen thousand dollars as grant making the total grant a value of twenty one thousand dollars.

A residential building qualifies for a first home owners grant. The place should be used only for residential purpose. It can be a house, unit, apartment, flat, moveable home or a townhouse. Any approved agent can be contacted for grant application forms and other information. Related documentations also need to be submitted to the approved agent. Documentation includes identification proof; only one proof is valid for one category. The necessary proofs required are birth certificate, current passport, citizen certificate and for other citizens permanent residence certification. In case of dispute regarding processing of application form a complaint can be lodged with the commissioner. The complaint should be filed within sixty days of denial of your application. Details of the objection of first home owners grant also should be given in full detail to the commissioner to proceed with the case.