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NSW could lose 'best and brightest' as FHBs flee

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Australian Broker | 21 Jan 2013, 06:00 AM Agree 0
The REINSW is frustrated with the NSW governments' retraction of first home buyers' incentives, saying the state is at risk of losing its 'best and brightest'
  • Michael | 21 Jan 2013, 07:24 AM Agree 0
    “The strategy of the government to direct first home buyers towards new property is flawed because it suggests demand is the issue, when in fact supply is the issue."

    Which is precisely why the grant is now a targeted effort to stimulate the construction of more housing. You're just upset that real estate agents typically miss out on these transactions.
  • GB | 21 Jan 2013, 10:32 AM Agree 0
    exactly right Michael above, the policy change is spot on........RE agents are welcome to tell vendors to drop their prices if they really want to sell existing homes to FHB?
  • Terry | 21 Jan 2013, 10:59 AM Agree 0
    I think the RE agents are hurting from the drop in commissions in areas that rely on the sale of existing properties only. thinga are booming in the growth areas and new sub divisions.
  • Country Broker | 21 Jan 2013, 11:09 AM Agree 0
    I agree with Michael , it is also a pity ( I am on the NSW / Vic ) border that the victorian Goverment does not understand that their stamp duty rebate/reduction policy incentives for FHOG is simply not working , a lot of FHOG land /construction type buyers are simply jumping over the border to NSW in places like Echuca/Moama , Albury Wodonga.

    The incentives exist to stimultae construction which results in the longer term in greater state goverment revenue .
  • Kris | 21 Jan 2013, 11:46 AM Agree 0
    I disagree with the Comments. First Home Buyers in outer West Sydney have been a large part of my Customer base. Most simply cannot afford to build/buy new homes, it is out of their price-range, so they continue to rent or stay at home with Parents. I have seen a dramatic drop in FHBs purchasing.
  • Tim | 21 Jan 2013, 12:18 PM Agree 0
    The crux of the First Home Buyer issue is education not incentives. The push for First Home Buyers is incentives when what should be going on is teaching them how to be better savers so they can build up a larger deposit (even if this takes 3 to 5 years)and showing them that they should start small and then work there way up to a larger property later. I am based on Sydneys' northern beaches and have helped many first home buyers into property here. These people have saved well, bought a small unit and in many cases have come back to me years later to upgrade to a house.
    This is the message that should be going out. I am sick and tired of reading article after article saying first home buyers can't get into the market. They can and they are when they do it the right way.
  • Positive Broker | 21 Jan 2013, 12:59 PM Agree 0
    I'm with Kris, a new home on the outskirts starts around $400k. that means a fhb needs $40k plus costs or $80k plus costs to avoid LMI. Maybe be possible if you live with parents but try saving that if your paying rent! It is also forcing fhbs in to a pretty big mortgage.
  • KT | 23 Jan 2013, 01:20 PM Agree 0
    The problem I have with the dropping of FHG for existing properties is that it forces young first home buyers into buying units OFF THE PLAN.

    There's all sorts of risks/issues in buying off the plan:

    1. The building might not be built until 18-24 months after initial deposit.

    2. Buyer cannot completely see what they're buying into until it is too late. What's the sunlight, noise, neighbours like once the unit is built. The display unit won't provide you this info.

    3. The strata fees intially are subsidised by the developer if the building is not fully sold off the plan. Buyers don't know the true trend of the strata fees until the developer has sold all their units (and usually you get a big shock in the actual increase in quarterly strata fees).

    4. The building defects and settlement cracks are not obvious until a few years after the building has been built. FHB don't know what they're buying until a few years later.

    NSw Govt shouldn't penalise a FHB (financially) for wanting buy a second hand older unit as opposed a new off the plan one.
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