A regional bank head has slammed first homebuyer grants, calling them "a waste".
Bendigo and Adelaide Bank chairman Robert Johanson has told News Ltd that first homebuyer grants are poor policy. He said the grants only serve to unnaturally drive up the cost of housing.
"The government were just giving people money to get into new houses, which transferred the value to the sellers. It just puts costs up," Johanson said.
Johanson said the grants were "bad policy", and that the housing market had succeeded because of economic prosperity rather than government intervention.
"The investment in housing was really driven by the prosperity rather than government policy. I think it was a waste and a distraction," he said.
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