First time buyers let down by Victorian budget, says REIV
The Victorian budget announced this week (May 7) will benefit residential property owners but not first time buyers, according to the Real Estate Institute of Victoria (REIV).
The 2013-14 budget will deliver an estimated operating surplus of $225 million, according to the Department of Treasury and Finance, but its implications for the property market are not positive for everyone.
REIV chief executive officer Enzo Raimondo said that while the reduction to unemployment plans and overall improved economy will benefit home owners, first home buyers have been let down by the budget.
"It is however a concern that the majority of first home buyers, especially those in regional Victoria and in affordable segments, will be worse off following the abolition of the First Home Owners Grant (FHOG) for existing homes," Mr Raimondo explained.
"The acceleration of the stamp duty cuts to 40 per cent does not cover the cost to the majority of first home buyers of the grants abolition."
The day before the budget announcement Mr Raimondo was looking to the changes to make improvements to property tax. While the stamp duty reforms are a positive change for property tax, he was disappointed in the FHOG abolition.