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Claims of 'bumper year' for first home buyers slammed

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Australian Broker | 30 Jan 2014, 06:00 AM Agree 0
A real estate body has rejected claims by the NSW government that 2013 was a 'bumper year for first homebuyers of new homes' in NSW, and called for more to be done to help first homebuyers enter the market.
  • annie | 30 Jan 2014, 09:17 AM Agree 0
    only $15k for most these days, not $32k. Investors have pushed prices so high that $15k amounts to not much.
  • Country Broker | 30 Jan 2014, 09:58 AM Agree 0
    so true
  • Patrick McMenamin | 30 Jan 2014, 10:10 AM Agree 0
    First Home Saver Accounts should be made a commission paying product for ACL holders and their Credit Representatives. Families should open such an account for every member on their 18th birthday. Savers plus their parents, grandparents, aunts and uncles, or older siblings can all contribute on terms agreed and the funds can only be used towards a home or paid into super. Interest earned is only taxed at 15% and in addition the Commonwealth will make a co-contribution of up to $1,020 per annum. You can accumulate up to $90,000 which can easily be achieved over 10 years. So a couple can accumulate $180,000 before they are 30 of which around $20,400 is government subsidy. The problem is the product is not promoted or advertised, in my view to enable policticians to claim credit at little cost.
  • annie | 30 Jan 2014, 10:39 AM Agree 0
    Patrick McMenamin - you're assuming a lot to achieve the $20,400 subsidy- the family is financially able to contribute to the child's saver account, the child doesn't have to spend all their money getting themselves through uni for 6+ years and lives at home funded by family, and the happy couple get together when they are 20 and stay together and contributing to their shared account for 10 years... sounds like utopia, not reality
  • Zealous | 30 Jan 2014, 10:53 AM Agree 0
    All that's happened is that the price of new properties has sky-rocketed so that the "incentive" provided by this narrow-minded government isn't even a drop in the ocean.
  • Patrick McMenamin | 30 Jan 2014, 11:09 AM Agree 0
    In my experience as both mortgage broker and financial planner, first home buyers predominantly range from 25 to 35 with mean, mode, median around 30. They aspire to own a home but have saved nothing and complain that goverment handouts do not cover the required deposit. Typically they have never heard of a First Home Saver Account. I am suggesting self-help for motivated aspirants with both family and government sponsorship. This solution can be distributed by a ready made network of professionals who would be eager even for nominal commission as it would be a new client who will need finance and probably insurance when a purchase proceeds. First home buyers are not entitled to instant gratification, no one is!
  • Still cynical... | 30 Jan 2014, 12:02 PM Agree 0
    I agree annie & zealous.
    Investors win....lets keep driving the price of real estate up, eventually there wont be too many property purchases that will have any SD exemptions. wont matter anyway, as the kids of these affluent investors might be lucky enough to be given a house free....
  • Tony Qld | 30 Jan 2014, 12:11 PM Agree 0
    One year reflection alone does not make for a true indication of the market or direction. Let's look at 5 yrs !!!
    Qld FHOG approvals
    2009 were 41K approx. of which there were also 37K Boost approvals approx.
    2012 was 21K of which there were 40 Boost approvals approx.
    2013 to June was 1.6K approx. with NO Boost approvals recorded to June 2013 !!!!!

    What does that really show us about the benefit of the BOOST or FHOG or Govt decisions !!!!!!!!!
  • Patrick McMenamin | 30 Jan 2014, 01:25 PM Agree 0
    Have we all forgotten the immortal words of Dame Margaret Thatcher. "Everything you want the government to give you must be paid for by increased taxes. Pennies do not fall from heaven, they must be earned here on earth."
  • Tim H | 30 Jan 2014, 08:23 PM Agree 0
    Patrick you are spot on. The government should be doing more about educating young people about savings, budgeting and planning for their future and not giving handouts for instant gratification.
    Annie Utopia does exist. I have had young couples who have saved in their first home saver accounts and accumulated significant deposits. Also had others who know the benefits of saving and not relying on the government that have accumulated significant deposits.
    The problem isn't not enough benefits it is not enough education.
  • George | 31 Jan 2014, 03:40 PM Agree 0
    As a first home buyer with a deposit well into six-figures I'd like to chime in and say that it isn't poor saving habits that have kept first home buyers out of the market.

    We are simply outbid time and time again by cashed up investors and overseas buyers who pay top dollar for what should otherwise be entry level properties - many of which are borderline derelict.

    The bottom of the market simply does not exist anymore unless you are willing to move out West where there is little evidence that any tax dollars have been spent to make living so remotely from the CBD a justifiable prospect.

    We have just recently been warned by our mortgage broker to avoid auctions as buyers are simply paying too much, banks are refusing to issue loans and many struggling first home buyers are losing deposits.

    Mr McKibbin has so far voiced the only opinion I can see that truly reflects the current situation faced by first home buyers.
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