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Deposit saving scheme gains traction

The First Home Saver Account initiative has gathered more than 40,000 accounts.

A scheme to help first time buyers into the Australian property market is gaining traction.

Over the first three months of 2013 there was a surge in users of the incentive, which brought the total number of accounts above 40,000.

The First Home Saver Account scheme was implemented by prime minister Kevin Rudd to help new buyers save a deposit so they could enter the property market. However, it is still well below its target of reaching 750,000 accounts.

Part of the reasons why first time buyers are inspired to start saving for a deposit could be because of the rate cuts from the Reserve Bank of Australia (RBA), which have made housing more affordable.

Even so, organisations such as the Real Estate Institute of Australia (REIA) claim that more can be done still to help first time buyers access the market. REIA has also criticised state governments for cutting grants to aid new buyers in obtaining a house.

Posted by Craig Francis


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