The Real Estate Institute of Australia has put forward a pre-budget submission to the government, outlining key areas that need to be addressed to solve the ongoing housing affordability issue.
As part of its submission, the REIA urged the federal government to review the First Home Owner’s Grant, as the soaring cost of housing far outweighs the $7,000 incentive.
REIA president David Airey said the main focus of the pre-budget submission is to lower the country’s housing affordability crisis by encouraging the return of strong first home buyer activity.
“An increase of the FHOG is crucial to improving affordability in the housing market and encouraging the return of first home buyers to the market,” Mr Airey said.
“The issues addressed in REIA’s submission are of great importance to the operation of the property market and we expect the government to consider these proposals carefully.”
When the FHOG was introduced in July 2000 the median house price was $220,443. Today, the median house price is $545,873, Mr Airey said.