REINSW requests rethink of first time buyer incentives
First time buyer incentives are at the forefront of a request by the Real Estate Institute of New South Wales (REINSW) to the NSW treasurer.
The institute is calling on the treasurer to reinstate the first home buyer incentives that were removed in 2012 and consider further opportunities to assist this group of residential property shoppers.
After changes introduced on October 1 2012, the institute's president Christian Payne said the reforms have "clearly failed".
"The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 14.4 per cent in February 2013 from 15.0 per cent in January 2013," said Mr Payne.
"In fact, they have fallen from 19.4 per cent in September 2012 and the all-time high of 29.5 per cent in May 2009. At this rate, we are heading towards lows of 12.5 per cent seen in March 2004."
Changes in the 2012 reforms meant that incentives for first time buyers were no longer offered on existing homes, and only available to eligible property hunters who were looking for new homes.
At this stage, the incentive will drop from $15,000 to $10,000 on January 1 2014 and will remain for new homes only, unless the treasurer addresses requests for change in the 2013 budget, due for release on June 18.