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First home buyers to share in the heavy lifting

15 May 14

Real Estate Institute of Australia (REIA) President, Peter Bushby says the housing sector is not immune to the Treasurer’s call for everyone to contribute to the Budget repair.

In REIA’s response to the Federal Budget, Mr Bushby says first home buyers saving for a deposit have lost yet another incentive with the abolition of the First Home Savers Account scheme.

“We would like to have seen the scheme reviewed and improved rather than simply thrown on the scrap heap because of an initial low uptake.”

“With home ownership in Australia declining and first home buyers finding it increasing difficult to enter the housing market, this will not help the situation.”

“By contrast, the Government has indicated that the National Rental Affordability Scheme (NRAS) should be reviewed – an action REIA supports.”

“We’re pleased to see no change to negative gearing in its current form for the purpose of property investment.”

“It is complementary to the goals of the Housing Affordability Fund (HAF) in addressing the supply of rental accommodation.”

“Abolition of negative gearing would result in a dwindling supply of properties for rent and escalating rents and reduced opportunities for low to middle income earning Australians to create wealth for self-funded retirement.”

“With Budget forecasts of moderate growth, a slight increase in unemployment and inflation well within the RBA’s target zone, interest rates should remain low for some time and that is good news for home owners and prospective buyers,” concluded Mr Bushby.

Click here to view REIA's Budget Snapshot available in the members section.