Do first home buyers need more incentives to get into the real estate market?
The Real Estate Institute of Victoria (REIV) seems to think so with an article trying to urge the Victorian State Government to review the current First Home Owner’s Grant.
According to the REIV, the $7000 First Home Owner’s Grant just doesn’t cut it anymore. When the First Home Owner’s grant was introduced in 2000 homes were worth less than half what they are now. This then makes the First Home Owner’s Grant about half as valuable to first home buyer’s as it used to be.
Recent evidence shows that incentives can definitely help encourage buyers into the property market. When the Federal Government’s First Home Owner Boost was around last year, first home owners were out in droves.
It is a rather different picture this year though, with only around 2500 first home owners seen in recent months compared to 4500 in the autumn of 2009.
This shows that first home owners might need some kind of assistance to get back into the property market.
Hopefully the State Government considers REIV’s request, and tries to find a way we can get new homebuyers into the real estate market.