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The real estate lobby has criticised the NSW government for a lack of appropriate development across the state.
Real Estate Institute of NSW president Malcolm Gunning said Premier Mike Baird had not done enough to help first home buyers enter the property market.
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Mr Gunning told The Adviser’s sister title, Real Estate Business, that he is concerned that the first home buyer grant and stamp duty payments are all aimed at purchasing new real estate.
He said this money could be better used to update existing free-standing homes in desired areas that are currently being knocked down to make way for new buildings.
“Today we have self-managed super funds and foreign investors all competing for the same stock. Just look at the inner city of Sydney,” Mr Gunning said.
“Within a 20-kilometre ring there are not many new houses built, mainly apartments, and it is obvious why the government is doing it – they got a billion-dollar win in the last Budget from property tax.
“But they should pull back and consider that first home buyers should be given the opportunity to purchase older-style property that needs repair, because it is a terrific stepping stone.”
Mr Gunning said it used to be easier for people to buy older homes as a way into the market, and to then renovate the properties.
“Now it is just about buying a brand new unit,” he added.
[Related: More generous first home owner’s grant fails to impress brokers]
