House and money bag on scales. What's more important protection or money?

15 June 2019

Consumer protection needed

By Tim McKibbin, REINSW CEO

The Government's proposed First Home Loan Deposit Scheme assists eligible first homebuyers to buy a property with a five per cent deposit, as opposed to the usual 20 per cent.

Despite supporting first homebuyers assistance initiatives, influencing a free market can have adverse and unintended consequences, which will need to be identified and managed. The Government assumes the banks will cooperate – time will tell.

If the Government really wants to assist first homebuyers, it would remove the GST imposed on new residential property – which, along with Local and State Government taxes and charges, inflates prices by 40 per cent. Homebuyers are rightfully asking why it is so expensive to own a home. The answer is property taxes and supply.