NSW BUDGET CUTS TO FIRST HOME BUYERS WON’T IMPROVE HOUSING AFFORDABILITY

NSW BUDGET CUTS TO FIRST HOME BUYERS WON’T IMPROVE HOUSING AFFORDABILITY

6 September 2011

The REINSW says the dream of home ownership has ended for many Australians as a result of cuts to stamp duty concessions for first home buyers announced in the State Budget.

The comments were made following the O’Farrell Government’s decision to slash First Home Buyers benefits by removing stamp duty concessions for existing homes.

“This is really disappointing news for families, essential workers and all those trying to buy their first home”, said REINSW President Wayne Stewart.

“Unfortunately for some, the dream of homeownership will now become simply unachievable.

“And in the broader context when the storm clouds are gathering over the global economic outlook, today’s decision is troubling.

“Australia weathered the last global financial crisis because the property market was invigorated yet those lessons have been ignored today.

“The REINSW believes that the budget initiatives announced today will unfortunately worsen the housing affordability and housing availability crisis gripping the state and hurting First Home Buyers.

“Whilst the announcement of a release of an additional 10 000 land sites is welcomed, it will have little impact as we would expect most of those sites would be well beyond the reach of first home buyers.

“The REINSW is not seeing anything in the Budget which goes to the heart of the housing affordability and availability crisis.

“It is unfortunate that the decision to cut first home buyers stamp duty concessions on existing properties will only serve to increase house prices and further erode housing affordability.

“It is inevitable that as first home buyers scramble to beat the January 1^st deadline, we will see prices increase as demand exceeds supply.

“The flow on effects for NSW are serious, both in metropolitan as well as regional and rural centres.

“The government’s announcement of hundreds of additional nurses, teachers, police and other frontline workers is laudable but as we have argued for years now, where will they be able to afford to live that is close to where they work?

“The simple reality is that as housing affordability is squeezed, more people are forced to look at alternatives such as renting which only worsens the accommodation crisis.

“Housing affordability is one of the single biggest issues affecting the state and unfortunately today’s announcement will only make the problem worse”, said Mr. Stewart.

Please direct media enquiries to Julian Brophy on 0408 276 749.