Are first home buyers the only current buyers?

There is much speculation that the boosts to the first home owner’s grants will be coming to an end with the financial year. There is also much hope that the Government will reconsider and extend the boost, particularly for new homes. It is being argued by many that a continued extension of the boost for newly constructed homes has the flow on effect of helping the construction industry and other associated trades.

  

There is no denying that from a real estate perspective, the increased first home buyer grants have had a positive impact on the market. The movement of stock up to the $500,000 mark as a direct result attests this. Figures released last week also showed that new housing sales increased during the month of March and it has been implied that it was the first home buyers who were responsible for this. Interestingly, in a statement made by the REIA President last week, it was noted that this claim failed to recognize the buying preferences of first home buyers.

  

According to the information released, most first home buyers have clear preferences in regards to where they live, and they choose proximity to entertainment and work over new housing estates. The reasons cited for this are lifestyle choice including an avoidance of long commutes but also an awareness of the environmental impacts of new estate developments.

  

Whilst there is no denying that some builders and purchasers of new homes are indeed first home buyers, some members of the real estate industry are providing information which suggests established homes are being sold to first home buyers, and it is the sellers of these homes who are moving into the new properties. So it would seem the argument for which boost should be extended indeed has two sides. In light of the information released by the REIA, the President of the REIA is urging the Government not to restrict an ongoing boost to only those first home buyers investing in newly established properties.

  Realistically whichever way the Government chooses to do so, the economy still needs support. It will be interesting to see in which way the Government chooses to deliver that in the new financial year.
Posted by Charles Tarbey on 04/05/2009 at 3:01 PM | Categories:

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