REIA says all first-home buyers should get grants, not just those buying new homes

The Real Estate Institute of Australia says all first-home buyers should receive a first home-owners grant, not just people buying new homes.

REIA president Pamela Bennett says she is concerned by moves by New South Wales, Queensland and South Australia to limit the grant to first-home buyers purchasing new homes.

“Not only is this in breach of the InterGovernmental Agreement (IGA) but it ignores the evidence that 70% of first-home buyers have a clear preference for established houses.”

“The IGA clearly states that assistance to first-home buyers will be uniform and that an eligible home will be new or established.

“First-home buyers make up 17.7% 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 home buyers 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.”