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Aspiring first home buyers could benefit greatly from an increase to the First Home Owners Grant, a national survey has found.
Loan Market’s survey of the company’s mortgage brokers found 55 per cent believed an increase to the First Home Owners Grant in the upcoming May budget would bring first timers back into the market.
“A boost to the FHOG could help thousands of people wishing to purchase their first home. It could also provide a much needed spark to the property market,” Loan Market chief operating officer Dean Rushton said.
The survey’s findings follow a government submission by the Real Estate Institute of Australia (REIA) earlier this month, calling for the grant to be brought in line with current property prices.
Like the REIA, Mr Rushton said that an adjustment to the $7,000 FHOG was necessary.
“The latest data shows the median price of a home in a capital city is just over $450,000. When the scheme was introduced in 2000 the median price was $220,000. Clearly we’re dealing with a far different economic environment,” Mr Rushton said.
“A grant of $7,000 is no longer sufficient because of the elevated costs first home buyers are facing.”