Budgets Leave Home Buyers In The Cold

State budgets have left many involved in real estate in Australia feeling disappointed, noting that there is not enough support for homeowners or potential home buyers.

One such group disagreeing with recent budget decisions includes the Real Estate Institute of Australia (REIA). This organisation claims that state policies are letting down first home buyers in particular.

In 2000, an Intergovernmental Agreement (IGA) was made that said that all states' assistance to first home buyers would be 'uniform' and 'an eligible home will be new or established.'

However, the REIA claims governments have now left many first home buyers out in the cold, as the Tasmanian government has announced it is going to end its $7,000 First Home Buyer Grant.

"Governments of Queensland, New South Wales, South Australia, Victoria and now Tasmania have either ceased providing assistance to first home buyers purchasing established housing or have indicated that they will be ceasing to do so by July 2014," said president of the REIA, Peter Bushby.

Mr Bushby also said that this action is a breach of the IGA on Federal Financial Relations, and ignores the evidence that 80 per cent of first home buyers have a clear preference for established housing.

According to the REIA, has clearly affected the real estate market for first home buyers, who have been significantly dropping in numbers recently.

While the official interest rate has been cut to record levels by the RBA, the proportion of first home buyers decreased to 14.2 per cent in March 2013, while the long-term average is 20.2 per cent.

Mr Bushby asserted that many first home buyers preferred living close to existing facilities and work rather than buying in new housing estates, with 80 per cent of first home buyers choosing to live in established dwellings.

The REIA is also unhappy with some of the budget announcements released on May 14, stating that it also isn't doing enough to support the real estate industry or home buyers.

"There’s nothing in this budget for first home buyers. Numbers of first home buyers have plummeted since the First Home Buyer Boost was abolished," said Mr Bushby.

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