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Axing of the first home buyers bonus will hit rural and regional centres hard
13 September 2011
REINSW says additional initiatives to bolster rural and regional communities are urgently needed following the abandonment of the first home buyers grant as part of the NSW Budget.
The O’Farrell Government’s decision to slash First Home Buyers benefits by removing stamp duty concessions for existing homes will hit rural centres hard, according to the state’s peak industry body.
And in an apparent contradiction, while benefits will soon be cut for first home buyers in rural areas, their city cousins will still receive $7000 to relocate to regional NSW.
“The decision to cut the first home buyers stamp duty concession for existing homes is a serious blow for struggling rural and regional communities,” said REINSW President Wayne Stewart.
“We know that the vast majority of purchase transactions by first home buyers are for existing houses, accounting for four out of every five transactions.
“In some rural communities we would expect that figure to be even higher, especially where new build residential accommodation is financially unviable.
“The simple fact is that many rural first home buyers have no alternative but to buy already constructed properties, so they will be particularly disadvantaged by the government’s decision.
“Removing stamp duty concessions for existing properties means some first home buyers in regional and rural NSW will not enjoy the same choice as offered to those in metropolitan communities.
“What is needed is a special initiative that can operate in rural areas and that reflects the unique needs of those living outside metropolitan NSW.
“Ironically, after 1 January, as rural first home buyers have stamp duty concessions cut, those looking for a tree change from the city will be getting $7000 in upfront assistance.
“We really should be encouraging people already living in rural NSW to stay there by providing bonus home buyers benefits as are already offered to city dwellers.
“The power is in the hands of the Premier and Treasurer to extend this scheme to provide an incentive for people already living in regional NSW.
“There is no doubt that rural NSW will suffer hardship as a result of the cuts to stamp duty concessions and REINSW calls on the state government to act quickly and identify a means by which young home buyers won’t be disadvantaged because of where they live,” said Mr Stewart.
Please direct media enquiries to Julian Brophy on 0408 276 749.
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