Tuesday, May 15, 2012

 

O'FARRELL LOCKS FIRST HOME BUYERS OUT OF THE MARKET

 

Barry O'Farrell has locked first home buyers out of the property market – with new figures confirming there has been a 60 per cent drop in home loan approvals for first home buyers since the O'Farrell Government axed stamp duty exemptions in December 2011.

 

The Australian Bureau of Statistics reports that 2586 less first home buyers received finance approval in March 2012 compared to December 2011 - a 60.4 per cent drop.

 

"The numbers speak for themselves. Barry O'Farrell has locked first home buyers out of the housing market," said Opposition Leader, John Robertson.

 

"Young families who have scrimped and saved for years have been forced to put the dream of owning their own home on hold. 

 

"The cuts announced in last year's budget came into effect from January 1, 2012 – costing an average first home buyer an extra $17,990 upfront on the purchase of a $500,000 home.

 

"That's an extra $17,990 first home buyers have to find – in addition to their deposit, before they can fulfil their dream of owning their own home. 

 

"Families in western Sydney will be hardest hit - with the top 20 suburbs affected almost entirely made up of suburbs in the west."

 

The ABS data shows:

 

·         732 less first home buyers received finance approval in March 2012 compared to March 2011 (a 30.2 per cent drop)

·         2586 less first home buyers received finance approval in March 2012 compared to December 2011 (a 60.4 per cent drop)

·         132 less first home buyers received finance approval in March 2012 compared to February 2012 (7.2 per cent drop)

 

"No matter how you look at it – first home buyers have been dudded by the O'Farrell Government," said Shadow Treasurer, Michael Daley.

 

"Thousands of people on the verge of buying their first home have been caught $17,990 short – and many of them have given up for good.

 

"With interest rates on the way down, you would expect first home buyers to be rushing in to buy – but instead, many of them have been forced to delay taking that first step onto the property ladder."

 

ABS data: http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main Features2Mar 2012?opendocument&tabname=Summary&prodno=5609.0&issue=Mar 2012&num=&view=