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First home buyers falling in Australia

Despite interest rate cuts, there seem to be fewer first home buyers in Australia.

The number of first-time buyers in Australia appears to be falling.

This can be explained by the fact that state governments are withdrawing some of the grants available to first home buyers, says the Real Estate Institute of Australia (REIA).

According to figures from the Australian Bureau of Statistics, the proportion of first home buyers taking out mortgages fell to 13.7 per cent from 14.7 per cent in July.

President of REIA Peter Bushby noted that the portion of first home buyers is abnormally low: "The figure is the lowest since April 2004 and is far lower than the long-run average proportion of 20.1 per cent, despite eight interest rate cuts since November 2011."

A number of state governments have decreased the amount of financial help that first home buyers can obtain when purchasing established dwellings but, in turn, have increased the grants available to first home buyers seeking to gain new properties.

Posted by Steve Douglas

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