Grant sure would be welcomed
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.