Why Reducing Red Tape Is Good News for Property Investors
For the past few months, affordability and supply issues have plagued some of the areas in the country, preventing potential investors from entering the market. However, the situation may improve soon, following the Federal Government’s response to a review of competitive policies in Australia.
So what does this mean to your property investment plan then?
Red Tape Reduction
The Competition Policy Review Final Report was released earlier this year, and it includes recommendations on land-use strategies and zoning laws. Recently, the Federal Government issued a response backing some of the recommendations mentioned in the review.
The response indicated that “The Government recognises the productivity benefits of removing unnecessary red tape and implementing effective land‐use planning, including the transparent application of a community net‐benefits test.”
“The Government encourages the states and territories to review planning and zoning regulations and include competition principles in the objectives of planning and zoning rules so that they are given due weight in decision making,” the response continued.
The response could effectively pave the way for reducing red tape which, in turn, could ease affordability and supply issues. Property Council of Australia chief executive Ken Morrison believes that the indication alone, that the Government is willing to consider paying states and territories to make improvements, encourages reforms.
Julio De Laffitte, head of the JDL Strategies group, has called for similar measures earlier this year. In a media release last May, Mr De Laffitte said that: “Tightening lending conditions on one segment of the market (investors) isn’t the answer to a booming market in one city. The problem is not investors but access to good land, approved and registered in a timely manner through local governments.”
By reducing red tape, there’s a good possibility that entering the housing market will be easier in the future for Mum and Dad investors who simply want to secure their financial future. But investors still need to be thorough with the investment plan to make the most of this opportunity.
At JDL Strategies, we constantly fight for everyone’s right to create sustainable wealth. Securing your financial future starts with careful planning and effective strategies.
Talk to us to learn more how we can help you grow your property portfolio.