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More support needed for first time buyers

The buoyant Australian property market may be proving too much for some first-time buyers, according to an industry association.

The buoyant Australian property market may be proving too much for some first-time buyers, according to an industry association.

The Real Estate Institute of Australia (REIA) has called on the government to look at house affordability and offer support to those attempting to step on the property ladder for the first time.

In particular, the REIA has put forward ten different proposals aimed at easing the challenges faced by people hoping to buy their first home.

The initiatives include the removal of stamp duty, increasing the first home owner grant incentive, introducing policies to ensure sufficient housing supply and looking at boosting private investment in the private rental sector.

According to REIA data, there has been a fall in first home buyers over the past two years from 20.2 per cent to 12.3 per cent, despite eight interest rate cuts during that time.

A statement from the REIA explained: "The series of interest rate cuts, whilst helping affordability, are not sufficient on their own to address the matter in its entirety."

There has been a number of changes made to the buying process in some states, with the South Australian government recently opting to remove the legal obligation for property deals to be approved on paper so there can be an increase in e-paperwork use to speed up transactions.

Posted by Steve Douglas.

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