Following the dramatic slump in New South Wales and Queensland first home buyer (FHB) mortgage commitments in January and February (see below chart), which came after both states removed the first home owners’ grant (FHOG) on pre-existing dwellings in October 2012, I noted to “expect housing industry calls for the FHB grant on pre-existing dwellings to be re-instated to grow louder in the name of housing affordability”.
As expected, the Real Estate Institute of New South Wales (REINSW) has stepped-up lobbying efforts to have the state government reinstate the FHOG on pre-existing dwellings, as well as provide further taxpayer-funded incentives. From Property Observer:
…the Real Estate Institute of NSW (REINSW) is already campaigning for the reinstatement of first home buyer incentives in NSW for purchasers of existing properties as demand from this key sector continues to fall.
First-home buyer as a proportion of the mortgage market fell to just 14.4% in February, down from 15% in January, according to ABS figures – their lowest share of the market in more than eight years.
“We are calling on the Treasurer to not only reinstate first home buyer incentives that were removed in 2012, but to also explore additional opportunities to assist first home buyers to take their first step onto the property ladder,” says REINSW president Christian Payne.
“It is not too late for the NSW Government to reverse its decision to abolish from 1 January 2012, the stamp duty exemption/concession and from 1 October 2012, the $7000 grant, for those buying existing properties.
Expect similar lobbying efforts in the lead-up to the Queensland State Budget. I just hope both state governments have the cojones to reject the property industry’s pleas for further taxpayer support. They have fed from the taxpayer’s teat long enough.
