Memo to the State Government: stop making the housing crisis worse!
THOUSANDS of first home buyers will get up to $4000 extra in taxpayer-funded grants… as the state government tries to ride the global economic recovery and create another 30,000 jobs next year…
From July 1, first-time buyers who purchase a new house in Melbourne will get a total of $20,000 in government grants, up $2000, and those buying a new home in regional and rural Victoria will get $26,500, up $4000. But the grant for first home buyers purchasing existing homes will be cut by $2000 to $7000.
First home buyer grants COST FIRST HOME BUYERS MONEY. They increase prices by more than the value of the grant and put young people further into debt. The only people who benefit are the vendors who essentially get a massive taxpayer-funded handout.
Naturally, the greedy real estate industry wants more:
Property industry leaders welcomed the extra help for first-time buyers of new houses, but criticised the government for failing to cut stamp duty on property sales.
Yeah, well, of course they want that – lower stamp duty means more houses being exchanged and a bigger cut for the land rats. But surely everyone can see that cutting stamp duty would just be a further transfer of public money to those already benefiting from the housing unaffordability crisis – buyers would just bid more. And, since unlike first home buyers investors are bidding with the equity in existing property, of which following a stamp duty cut they’d have more, they’d have an even easier time pricing them out.
All at the expense of the public purse – money that the State Government could use to actually help struggling young people, forced to live in ever remoter locations, by building public transport and other vital infrastructure to these new areas.
It’s astonishing to watch governments, now fully aware of the developing crisis, implementing and considering policies that actually make the problem worse.