The Real Estate Institute of Australia (REIA) has urged the federal government to make a careful assessment of first home buyer incentives off the back of calls for the grant to be extended for new homes only.
Proposals for the grant to be extended for new homes are based on the stimulus such incentives would provide to the building and construction industries.
But REIA president David Airey said such an initiative would fail to acknowledge the buying preferences of young Australians.
“Most first home buyers of generation X and Y have clear preferences to live close to entertainment and work, rather than new housing estates,” he said.
Mr Airey said real estate industry evidence showed it was sellers of established homes (to first home buyers) that were moving to new, bigger homes.
“To restrict an expected continuation of the FHOG boost to only buyers of new housing not only ignores first home buyer preferences but will lead to reduced sales of new housing as the trade-up market shrinks.”
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