Eligible first time buyers can now get $30,000 – up from $15,000 – towards the purchase of a new home or unit valued at less than $750,000.
But critics are warning the grant could worsen housing affordability. What’s causing their festive spirit to sour?
The main criticism is that a cash grant will boost demand, but won’t boost supply. This could cause prices to rise.
“Arguably, a better long term outcome would be derived from focusing on supply-side policy aimed at boosting the number of residential homes without the demand-side incentive,” writes CoreLogic executive research director with CoreLogic.
“This could be achieved via additional funding for social and community housing, more spending on strategic infrastructure projects that can make ‘cheaper’ housing better connected and more desirable, or by improving supply-side ‘blockers’ such as fast tracking the removal of red tape or speeding up town planning reforms.”
But regardless of the broader impact, history shows us when first home owner grants double, buyers jump in.
Thinking the deal sounds sweet to you? Remember the grant is for the purchase of a new home or unit (not an existing home). This could also include a granny flat or relocatable home on a relative’s land. Check if you’re eligible for the first home owner grant.
Ready to buy? View our current listings for sale.