Governments spent $20.5b on first home buyer help that pushes up prices: report | TawarRazaghi
Australian governments have spent more than $20.5 billion on first-home buyer help in the decade to 2021.Property prices are now more expensive and home ownership rates are stagnant.Australian governments spent more than $20.5 billion on first home buyer help in the past decade, which made housing affordability worse by driving up property prices and left existing homeowners richer, new research found.
The report compiled total spending by state and federal governments over a decade on stamp duty concessions, First Home Owner Grants, and the pandemic-era HomeBuilder program.It criticised the effect of these grants, which provide cash to buyers who then spend it at auction, flowing into the pockets of home sellers.
“It’s worse than a waste [of money]. It’s money that has gone into making a problem worse … and it ends up going into inflating home values,” Martin said.“It ultimately goes to first home vendors. That’s who it really assists and governments really don’t get anything to show for it. “That would be close enough to made sure that would have been a 15 per cent increase in social housing stock over a decade, that would have been enough to keep [up with] population growth. It’s a lot of money,” Coates said, adding that it could have also increased Commonwealth Rent Assistance by at least 40 per cent.
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