Grant sure would be wel­comed

The Weekend Post - Real Estate - - Front Page -

I’M NOT usu­ally one to talk pol­i­tics but since we will be head­ing to the polls next month, I’m go­ing to weigh into the hous­ing af­ford­abil­ity saga.

The is­sue of af­ford­abil­ity has been a key elec­tion is­sue.

One party wants to get rid of neg­a­tive gear­ing tax ben­e­fits on new pur­chases, the other says by do­ing this it will push up rent prices and cause a prop­erty “cri­sis”.

Just this month Queens­land Trea­surer Cur­tis Pitt an­nounced an ex­tra $5000 would go to first home buy­ers who de­cide to build or buy brand new.

This is through the Great Start Grant which will be worth a to­tal of $20,000 for those el­i­gi­ble (from July).

Well, I say the pol­lies should bring back the for­mer First Home Own­ers Grant.

Yes, that $7000 bonus will cre­ate an im­mense headache for the boffins who crunch the Bud­get fig­ures, but it could also solve part of the af­ford­abil­ity is­sue.

There are plenty of peo­ple who are re­port­ing they can­not get a leg up on the prop­erty lad­der due to hav­ing to save a 20 per cent de­posit.

That’s $70,000 to save for a $350,000 pur­chase.

There is also data sug­gest­ing peo­ple are now liv­ing with their par­ents un­til their mid-20s be­cause they are sav­ing for their slice of the “Aussie Dream”.

I went dig­ging for some fig­ures on how many first home buy­ers are ac­tu­ally div­ing into the prop­erty mar­ket com­pared to pre­vi­ous years.

Ac­cord­ing to the Aus­tralian Bureau of Sta­tis­tics April 2016 Hous­ing Fi­nance Re­port, the num­ber of dwellings which were fi­nanced by first home buy­ers across Queens­land for the month of April was 1523.

Can I re­it­er­ate – that is across the en­tire state!

This com­pares to 3376 first home buy­ers who pur­chased their first abode in Novem­ber 2001 and 2124 first-time buy­ers in Septem­ber 1993.

Trawl­ing through the data you can see a dis­tinct drop in the num­ber of first home buy­ers in re­cent years.

I’ll let those fig­ures res­onate, how­ever, I do be­lieve if any­one re­ally wanted to help this and the next gen­er­a­tion en­ter the prop­erty mar­ket then the First Home Own­ers Grant should be re­vis­ited.

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