First-time home buyers struggle to find housing despite generous incentives | North Queensland Register

Real estate experts point to the flaw in the generous home ownership programs being rolled out across the country.

Lack of available accommodation.

And the long delay in building new ones.

Each state government has its own version of these seemingly generous programs and it has become a problem for federal elections as well.

The pandemic trend of cities moving into the country has already eaten up much of the available inventory of homes for sale, agents say.

REA Group economist Eleanor Creagh said the pandemic has led to a boom in remote working and with more flexibility some have opted for a lifestyle change to cheaper capitals or regions.

“South East Queensland and Adelaide have seen strong interstate demand, driven by a relative affordability advantage over Sydney and Melbourne, larger blocks and lifestyle benefits such as reduced traffic” , she said.

“Buyers may be looking for value after house prices have risen sharply since the start of the pandemic.”

The median property price in Brisbane is just over $600,000, compared to over $1.2 million in Sydney.

Rising house prices, both in the city and in the countryside, have pushed many homes out of reach for first-time buyers.

With material and labor shortages, many builders cite a one-year delay before new homes can be built.

The Coalition’s latest federal pitch is to raise house price caps as part of its housing guarantee program.

Buyers with just 5% of the home price can apply for the scheme, in which the government guarantees up to 15% of the loan.

Today’s policy push is for the new borrower to avoid the cost of obtaining mortgage insurance from lenders that is triggered if they cannot pay 20% of the loan amount.

MORE READING: Canada bans foreigners from buying their homes for two years.

A similar program was first promised by the Labor Party.

New home ‘price caps’ have been increased to $800,000 for Melbourne and Greater Victoria and $900,000 in Sydney and Greater NSW.

Victoria has one of the most controversial diets.

Its fund for homebuyers has already seen 850 Victorians sign up for $140million already spent on ‘equity finance’ in just six months.

The fund reduces the required deposit to five percent, again to avoid insurance from mortgage lenders.

Popular house and land programs have been slow to catch up with demand.

The government contributes up to 25 percent of the purchase price in exchange for an equivalent share in ownership of the property.

Like most states, Victoria also enjoys stamp duty exemptions and concessions.

Just over $1.1 billion was paid through more than 51,000 stamp duty concessions and exemptions and 21,000 first-owner grants of up to $10,000 last year.

These grants are available to Victorians buying or building a new home worth up to $750,000.

First-time home buyers are exempt from stamp duty if they buy a property for $600,000 or less.

In New South Wales, they can buy an existing home worth less than $650,000 to claim full stamp duty exemption and pay no transfer tax.

If you buy a new home worth less than $800,000 in New South Wales, you can claim full exemption or buy a new home worth between $800,000 and $1 million at a rate preferential.

In Queensland there is a grant of $15,000 to buy or build your new home (valued at less than $750,000).

In South Australia, you can receive a grant of up to $15,000 for a new home of $575,000 or less.

Western Australia has a $10,000 grant available for new or “substantially refurbished” homes worth $750,000 south of latitude 26 (including Perth) and $1 million north of this line.

The lack of available housing has already been identified as a key problem for regional areas trying to take advantage of the new popularity of the countryside relative to the city.

Ms Creagh of the REA Group points to the lack of houses available for purchase.

“Across the regions, buyers have faced fierce competition and limited choice for much of the pandemic, with total inventory available for sale remaining 40% below pre-pandemic levels,” a- she declared.

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The story First-time home buyers struggle to find accommodation first appeared on Farm Online.

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