First time buyers double dip: Housing grants from government and parents
One in five first home buyers are looking to their family to provide the deposit, according to a Bankwest/Mortgage & Finance Association of Australia (MFAA) Home Finance Index.
“An increasing number of first home buyers are considering looking to their family to provide a deposit to help them get on the property ladder,” said Phil Naylor, CEO of the MFAA.
Mr Naylor said that 19.2 per cent of respondents were considering the family option, up from 15.5 per cent in April last year.
“It can be tough getting into the housing market, particularly in expensive capital cities, and first time buyers are exploring a range of options to overcome this.
Head of Mortgages at Bankwest, Paul Vivian, said that they were seeking to support first home buyers by providing the information required by first time buyers to make informed choices.
“We understand that buying your first home is a complex process, which is why we work with first home buyers to ensure they are adequately prepared and understand the process,” Mr Vivian said.
Mr Naylor said that an increasing number of prospective first time buyers were living with their parents to help them save up for a deposit.
“The stay-at-home option was the favoured strategy of 16.7 per cent of respondents, compared to 13.3 per cent in the previous survey.
On the issue of whether the government was doing enough to support first time buyers, only 37.2 per cent agreed.
“Despite the significant cash grants and stamp duty relief, six out of ten respondents think that the government isn’t doing enough to help first time buyers.
“While governments are providing cash relief for first time buyers, there are arguably issues relating to housing supply that would be influence this perception.
Yet when first time buyers were asked whether the First Home Owner Grants help them to buy a home, almost half (48.1 per cent) agreed. Another 17.6 per cent of respondents felt that the First Home Owner Grants are counter-productive and have artificially inflated the market.
Interestingly, 13.9 per cent of respondents said that they intend to wait until the grant has finished and prices have moderated, before they take the housing plunge.
Mr Naylor said that when asked whether the decision to extend the grant influenced their decision of whether to buy a home, 39.4 per cent of respondents agreed. Only about one in five (22 per cent) said that they were more likely to buy a home as a result of the extension.
For further information phone:
Nick Davy, Wilkinson Media - 0447 637 807
Kerry McGregor, MFAA Director Member Services - 0414 955 899
Adrian Bradley, Bankwest – 0427 674 851