The Real Estate Institute of New South Wales (REINSW) is calling on the state government to reinstate first homebuyer incentives following a decrease in the number of first homebuyer sales.
“First homebuyers are an essential link in the chain of the entire market and by excluding them it causes a great disturbance,” said REINSW president Christian Payne.
Payne added that first homebuyers are a unique category of property consumers and that ‘the jump they have to make from a standing start to acquiring a property’ can be huge.
“The current strategy of directing first homebuyers to new property has not achieved what they wanted. In fact, it has adversely affected the volume of property transactions,” he said.
Need help getting started in property? Get expert advice here
The $7,000 first homebuyers’ grant for those buying existing properties was abolished in September last year and replaced with a new grant of $15,000 for first home buyers purchasing newly built dwellings.
However, Payne said the new system is too problematic.
“The strategy of the government to direct first homebuyers towards new property is flawed because it suggests demand is the issue, when in fact supply is the issue. The inhibitors of supply are the convoluted planning system and the government’s dependency on property taxation.”
Do you have more than $200k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out