The Real Estate Institute of Australia (REIA) is urging the federal government to unite all states and territories in the provision of assistance for first home buyers.
In its pre-Budget submission, the REIA identifies housing affordability as an “acute issue” for first home buyers.
The submission labels recent findings that first home buyers who used a personal loan or credit card for a deposit were relying exclusively on debt as “alarming”.
“With three quarters of Australian first home buyers having less than a 20 per cent deposit, it is critical that first home buyers have additional ways of supplementing their deposit savings,” the pre-Budget submission said.
The submission also calls for first home buyer assistance to be uniform and not discriminate between buyers of new or established housing.
REIWA president David Airey supported REIA’s call for a more uniform approach.
In Western Australia first home buyers receive a grant of $10,000 for a new construction and $3,000 for an established dwelling.
Mr Airey said the imbalance of the First Home Owner Grant in WA was skewing many first-time buyers to new builds, and as a result this demographic was not soaking up as much of the existing stock as had traditionally been the case.
“This imbalance is contributing to the swell in overall listings because first home buyers usually remove stock from the market rather than add to it,” Mr Airey said.