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Matthew Sullivan
Any additional increase to the first home owners' grant could do more harm than good, one pundit has claimed.
Starr Partners Real Estate chief executive officer Douglas Driscoll said any increases to the first home owner's grant could ultimately have a negative impact on the market and lead to further mortgage delinquencies.
“Across all the big hubs of Australia delinquencies are on the rise and that will be more prevalent as interest rates go up once or twice before the end of the year,” Mr Driscoll said
“Obviously when the federal government gave extra stimulus incentives to first home buyers, it encouraged them to go out and buy property.
“The problem was, many average Australians weren’t financially ready. So when interest rates began to climb at the end of last year, many found themselves in trouble,” Mr Driscoll told Real Estate Business.
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