House warming gift for first timers
http://www.bendigoweekly.com/articles/6032/1/House-warming-gift-for-first-timers/Page1.html
By Anthony Radford
Published on 03/19/2008
THE City of Greater Bendigo council is set to be the first municipality in Australia to allow first home owners to live rates-free for a year, in an attempt to ease the housing affordability crisis.
THE City of Greater Bendigo council is set to be the first municipality in Australia to allow first home owners to live rates-free for a year, in an attempt to ease the housing affordability crisis.
Council first
THE City of Greater Bendigo council is set to be the first municipality in Australia to allow first home owners to live rates-free for a year, in an attempt to ease the housing affordability crisis.
The council this week voted to trial a plan to waive the first year of council rates for new first-home owners who buy a house worth $150,000 or less.
Sandhurst Ward councillor Wayne Gregson mooted the plan last year, asking for a report into waiving the rates for first homes costing up to $250,000.
However, a council report unveiled at Wednesday night’s council meeting claimed that would cost council almost $400,000 in rates revenue.
As a compromise plan, council City Strategy director Jan Boynton recommended capping the rates holiday at houses worth $150,000 or less, which would only drain about $60,000 from council coffers.
Cr Gregson said the revised plan was a reasonable outcome.
“I would have liked it to apply to a broader rates base, but financial responsibility has to come into it.”
Cr Gregson said the rates holiday plan could work on a number of levels.
“It might be a bit more of an encouragement for people for people to think responsibly about buying a modest first home, instead of the McMansions,” he said.
“Even if the only outcome of this plan is symbolic and supportive, it is still a worthwhile project.”
In her report, Ms Boynton said the housing affordability crisis was centred more in metropolitan areas than regional cities.
“The national debate concerning housing affordability is largely focussed on metropolitan and coastal centres where desirability is high,” she said.
“The price of dwellings in Bendigo is relatively affordable in comparison with other areas.”
Ms Boynton said the average median house price in Melbourne was $485,000 and a lot greater in some suburbs.
“In the City of Greater Bendigo, the average land sale price in 2007 was $98,198, with average housing prices at $232,778,” she said.
“The land price has risen from $42,094 in 2000, whereas the average dwelling in 2000 was $98,444.
“These prices represent relative affordability in comparison to capital cities and coastal areas.”
The council this week voted to trial a plan to waive the first year of council rates for new first-home owners who buy a house worth $150,000 or less.
Sandhurst Ward councillor Wayne Gregson mooted the plan last year, asking for a report into waiving the rates for first homes costing up to $250,000.
However, a council report unveiled at Wednesday night’s council meeting claimed that would cost council almost $400,000 in rates revenue.
As a compromise plan, council City Strategy director Jan Boynton recommended capping the rates holiday at houses worth $150,000 or less, which would only drain about $60,000 from council coffers.
Cr Gregson said the revised plan was a reasonable outcome.
“I would have liked it to apply to a broader rates base, but financial responsibility has to come into it.”
Cr Gregson said the rates holiday plan could work on a number of levels.
“It might be a bit more of an encouragement for people for people to think responsibly about buying a modest first home, instead of the McMansions,” he said.
“Even if the only outcome of this plan is symbolic and supportive, it is still a worthwhile project.”
In her report, Ms Boynton said the housing affordability crisis was centred more in metropolitan areas than regional cities.
“The national debate concerning housing affordability is largely focussed on metropolitan and coastal centres where desirability is high,” she said.
“The price of dwellings in Bendigo is relatively affordable in comparison with other areas.”
Ms Boynton said the average median house price in Melbourne was $485,000 and a lot greater in some suburbs.
“In the City of Greater Bendigo, the average land sale price in 2007 was $98,198, with average housing prices at $232,778,” she said.
“The land price has risen from $42,094 in 2000, whereas the average dwelling in 2000 was $98,444.
“These prices represent relative affordability in comparison to capital cities and coastal areas.”