The federal government should stop state governments from only helping first timers buying new homes, the Real Estate Institute of Australia (REIA) has said.
The REIA said it is concerned about the stance taken by the governments of New South Wales, Queensland and South Australia in their announcements to only provide assistance to first home buyers who are purchasing new homes.
“Not only is this in breach of the InterGovernmental Agreement (IGA) but it ignores the evidence that 70 per cent of first homebuyers have a clear preference for established houses,” said REIA president Pamela Bennett.
“The IGA clearly states that assistance to first homebuyers will be uniform and that an eligible home will be new or established.”
“First home buyers make up 17.7 per cent of the market. REIA strongly urges the federal treasurer, Wayne Swan, not to agree with the states’ requests for an amendment to the IGA and effectively ignore the needs of this considerable section of the buyer’s market.”
“The socio-economic demographic of most first homebuyers shows a clear preference to live close to existing facilities and work as opposed to buying in new housing estates. Lifestyle, public transport and commuting are just a few of the factors concerning those entering the market.”
“Furthermore, first home buyers of established homes often embark on a program of home-improvement and renovation, which helps stimulate the building sector,” concluded Ms Bennett.