Federal Budget Ignores First Home Buyers – But Good For Pensioners

The federal budget is ignoring the problems of many young Australian's hoping to purchase their first house, according to the Real Estate Institute of Australia (REIA).

In a statement released yesterday (May 14), REIA president Peter Bushby said there was nothing in the budget to help first home buyers acquire real estate in Australia.

"In May of 2009, 31.4 per cent of all purchasers were first home buyers. The figure from March this year is 14.2 per cent, well below the long term average of 20.2 per cent," he said.

That said, the REIA did praise the trialing of a program designed to support pensioners who wish to downsize their homes.

"Under the trial program, eligible pensioners who have lived in their own home for at least 25 years and want to downsize will need to put a minimum of 80% of the excess sale proceeds from the sale of their former home into a special account," he said.

The budget also calls for all jurisdictions to revise ineffective state tax laws – including stamp duty.

"Australians want to own their own homes. They see it as a priority and more needs to be done to assist first home buyers," he said.