{"id":39446,"date":"2022-07-08T09:48:10","date_gmt":"2022-07-07T21:48:10","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39446"},"modified":"2022-07-08T09:48:10","modified_gmt":"2022-07-07T21:48:10","slug":"big-flaw-with-first-home-buyer-grants","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/big-flaw-with-first-home-buyer-grants\/","title":{"rendered":"Big flaw with first-home buyer grants"},"content":{"rendered":"

PHOTO: Government first-home buyer schemes are benefiting existing homeowners more than new homeowners, new AHURI findings show. FILE<\/strong><\/p>\n

Government first-home buyer<\/a> schemes are lining the pockets of established homeowners, rather than helping those trying to break into the market, new AHURI findings show.<\/p>\n

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First-home buyer schemes are lining the pockets of \u201cspeculators, landlords and established homeowners\u201d, according to the Australian Housing and Urban Research Institute.<\/p>\n

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First-home buyers flock to the \u2018wild, wild west\u2019 to get into fast-rising property market<\/a><\/h2>\n<\/header>\n<\/div>\n<\/div>\n

Australia\u2019s policies enable those entering the market to spend more, compared to international policies which help lower first-home buyer expenses, AHURI research has found.<\/p>\n

Report author Dr. Chris Martin said more could be done \u201cin restraining demand with existing owners\u201d, with current federal and state measures stimulating demand for housing.<\/p>\n

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One of Labour’s big property promises is put under the microscope \u2013 will ‘Help to buy’ actually help?<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\u201cSo housing prices are higher and people are taking on bigger debts,\u201d he said.<\/p>\n

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Biggest first-home buyer mistake: saving too long, mortgage expert claims<\/a><\/h2>\n<\/header>\n<\/div>\n

Dr Martin said with policies helping households already close to purchasing, as opposed to low-income earners and those with considerably less savings, house prices had risen, putting more money in the pockets of \u201cspeculators, landlords and established homeowners\u201d.<\/p>\n

\u201cWhen we look overseas, other countries have big grants as well, but we don\u2019t have enough policies in place to restrain existing homeowners from leveraging their housing wealth into a bigger position in the housing market,\u201d Dr Martin said.<\/p>\n

Dr Martin noted shared equity schemes, like those offered at a state level in Victoria and New South Wales, and now federally, as a step in the right direction as an alternative program to help new buyers break into the market.<\/p>\n

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Report author Dr Chris Martin.<\/strong><\/em><\/div>\n

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First-home buyer assistance programs are helping established homeowners borrow more money to put back into the property market, instead of helping those struggling to save for a deposit.<\/strong><\/em><\/div>\n

Meanwhile, the federal government\u2019s First Home Guarantee helps buyers with as little as a 5 per cent deposit purchase a home without paying lenders mortgage insurance.<\/p>\n

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First-home buyers withdrawing superannuation to qualify for First Home Loan Deposit Scheme<\/a><\/h2>\n<\/header>\n<\/div>\n

Dr Martin said most Australian schemes helped those with existing deposits place higher bids, raising prices of houses and allowing existing homeowners to borrow more money to put back into the property market.<\/p>\n

Leading economist Saul Eslake\u00a0has called first-home owner grants \u201csecond-home vendor\u2019s grants\u201d\u00a0as that was where the money ended up.<\/p>\n

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First-home buyers snapping up property with First Home Loan Deposit Scheme despite coronavirus crisis<\/a><\/h2>\n<\/header>\n<\/div>\n

The AHURI research compared Australia\u2019s first-home buyer assistance programs with those of Canada, Finland, Germany, Ireland, the Netherlands, Singapore and the UK.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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