Historically low interest rates and government incentives are prompting more first-home buyers (FHBs) to enter the housing market. However, according to Robert Gottliebsen, renewed talk of reintroducing death taxes will sap the confidence of FHBs:
After lying dormant for many years, death taxes are suddenly re-entering the speculative arena. And so to treasurer Josh Frydenberg I say: Don’t be tempted!.
…it is paradoxical that the latest death tax speculation comes when, after years of decline, first home buyers are returning to the dwelling market. First home buyers have been declining in numbers for over 10 years partly because couples have been afraid that they would never be able pay off the loans. There’s no doubt that low interest-rates are a significant force now driving young couples to stop renting or living with mum and dad. But also part of that attitude turnaround is the comfort that their parents have the savings, led by the family home to enable their children’s debts to be repaid when they reach retirement…
