New guidelines are to be introduced for homebuyers, with the Federal Government looking to expand the use of online bidding to other types of property deals, including those with long-term leases.
Key points:A new policy is aimed at making it easier for prospective homebuyer to make an informed decisionThe move will allow for an online bidding process in a more cost-effective mannerThe move comes as the Federal government moves to roll out a suite of new digital tools aimed at reducing mortgage rates and making it more convenient for home buyers to make their final purchase decision.
Key Points:The Government has already rolled out a number of new tools to help consumers make an educated decisionKey points:”If you’re not in the market yet, we’ve made a change to ensure that you can take part in an online bid for your home, and we want to encourage other potential homebuyners to use it,” Finance Minister Mathias Cormann said.
“You can find more information on how to participate on our website, as well as how to bid on a property in a range of properties across the country.”
The Federal Government is working to make the online bidding system more cost effective, with new measures in place to ensure a fair process for all buyers, including long-time homebuyrs.
The new guidelines will allow prospective home buyers access to a list of properties with leasehold agreements, and they will be able to access the bidding process via an interactive website.
“The new regulations will enable a better consumer experience in an increasingly complex market, and will help all Australians make an independent, fair and transparent decision about their future home,” Mr Cormann told reporters on Monday.
“This is an important step forward to making our country a more attractive place to live, invest and work, and to help ensure that all Australians have access to affordable and quality homes.”
He said the new changes were in line with the Government’s commitment to the Federal Budget’s $50 billion property affordability plan.
“There will be no more homebuy and land purchase for people who do not have the right qualifications,” Mr Cromann said, pointing out that a “new system of eligibility will also be introduced to ensure we do not leave anyone behind”.
He said it was hoped the new regulations would help to reduce mortgage rates, and help to ease the pressure on existing borrowers.
“In the short term, we are looking to encourage new and existing borrowers to use the new system so that they can make an equally informed and efficient decision,” Mr Carmichael said.
The changes will be introduced on November 25.
In a statement, the Federal Department of Finance said it had already made significant progress on the online process, including “significant enhancements to the current bidding process” which were “expected to make it easier and quicker to submit a bid”.
“The changes are part of a range in our Government’s plan to make sure the system is more cost efficient, easier to use and accessible to all Australians,” the statement said.
“The Government’s digital tools and new rules are also being rolled out across all Commonwealth Government departments and agencies to make bidding online as simple as possible.”
The Department of Housing and Local Government also announced it was rolling out an online property bidding system to help renters and prospective renters.
The Government announced last month it was introducing a suite in which prospective home purchasers can make their first purchase decisions using the internet.
Under the new online bidding method, prospective home owners can view a property listing, select the property and then submit an online offer.
The property can then be put through a “pre-bid” process where prospective home sellers are asked to identify a number, the type of home they want, and a specific date for the purchase.
The bid can then go through a number that determines the price to be paid, with a maximum bid of $150,000.
The Government says this is the lowest possible price possible, and it also makes it easier to “navigate through the complex process of bidding” to get a bid from a prospective home buyer.
The Federal Treasurer, Scott Morrison, also announced a series of measures to ensure the financial viability of the rental sector, including measures to allow people to rent from existing properties, and measures to help low-income Australians access the rent supplement.