There are just seven Saturday auctions before the first home owner grant will be slashed by $5,000 by the Baird Government, says Campbelltown MP Greg Warren.
The MP, who is critical of the cuts, says that from January 1, 2016 the first home owner grant for new homes falls by one-third, from $15,000 to $10,000.
“The cut is set to further hurt young people in Campbelltown, who are desperate to break into the frenzied Sydney property market,’’ says Mr Warren.
The most recent ABS data from August 2015 shows first homebuyers accounted for only 12.2 per cent of loans for residential dwelling purchases.
In March 2011, when the Liberal Government came to office, first home buyer loans represented 18.31 per cent.
“The cuts to the first home owner grant will leave many buyers in the lurch,’’ Mr Warren said.
[social_quote duplicate=”no” align=”default”]“They will make it even harder for young people in the Macarthur region to enter the property market.’’[/social_quote]
The Government has developed a dependency on the property market to fill Treasury coffers, failing to plan properly for when the property boom ends, the MP said.
In the 2014/15 financial year stamp duty contributed $9.2 billion to the state economy.
In the 2013/14 financial year the Macarthur region was represented heavily in the top 10 suburbs to benefit from the first home buyers grant.
“The Baird Government has failed to plan for the future of the property market in South West Sydney,’’ Mr Warren said.
“The Government is happy to ride the wave of a stamp-duty bonanza yet deliver nothing for struggling couples and young families who are desperate to buy their first home.
“The $5,000 cut by this Government is yet another blow to first home buyers priced out of the Sydney market.”
