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- 27 February 2001
First Home Buyers Scheme
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Page: 11853
The Hon. I. W. WEST: My question without notice is directed to the Treasurer, and Minister for State Development. Will the Treasurer update the House on the success of the First Home Buyers scheme?
The Hon. M. R. EGAN: The New South Wales Government is doing more to assist first home buyers than any other State Government. Since July last year more than 24,000 first home buyers across the State have taken advantage of the scheme. In fact, the scheme is costing a lot more money than we anticipated it would when it was introduced in last year's budget. In the next couple of weeks of the parliamentary session we will be introducing special appropriation legislation to appropriate additional moneys to cater for the very large number of young home buyers who are applying for the assistance. The figure of 24,000 includes more than 12,000 first home buyers in regional New South Wales. The Government's First Home Plus stamp duty exemption scheme—
The Hon. D. J. Gay: There wouldn't be many in Sydney, given the criteria.
The Hon. M. R. EGAN: That shows that the Deputy Leader of the Opposition is out of touch. Not everyone lives in Double Bay, Vaucluse or Woollahra—I know that that is the part of Sydney with which the honourable member is most familiar.
The Hon. C. J. S. Lynn: Where do you live?
The Hon. M. R. EGAN: I live in Surry Hills. The truth of the matter is that some 75 per cent of first home buyers in New South Wales are eligible for First Home Plus, and all first home buyers in New South Wales are eligible for the $7,000 first home grant. So all first home buyers are eligible for the $7,000 grant and some 75 per cent are eligible for First Home Plus, because 75 per cent of first home buyers buy a home within the $300,000 limit that applies in the Sydney metropolitan area. Eligible first home buyers in New South Wales pay no stamp duty on properties worth up to $200,000 in metropolitan areas and up to $175,000 in other parts of the State.
Since the start of the scheme in July of last year first home buyers across New South Wales have saved on average almost $3,000 in stamp duty costs. That is $3,000 they would have been paying if they still had a Liberal-National government in this State. Back in the days of John Fahey and Nick Greiner they would have been paying that $3,000. These concessions, added to the $7,000 from the First Home Buyers grants scheme, mean that first home buyers are now saving up to $12,000 on the cost of buying a home. As a result, thousands of home buyers have been able to buy their first home months earlier than they expected and have a smaller mortgage into the bargain. The scheme is clearly a great win for people looking to buy their first home. The scheme has been outstandingly successful, and I want every eligible first home buyer in New South Wales to take advantage of it. It is therefore very disappointing—
The Hon. J. F. Ryan: Under you lot, I have paid 17.5 per cent interest on the mortgage on my house, and I have never forgotten it.
The Hon. M. R. EGAN: The porcupine is at it again. He has had his spikes cut off since we saw him last.
The Hon. J. F. Ryan: They are still there.
The Hon. M. R. EGAN: Some of them are still there, but the ones in the middle have disappeared. I do not know why the Hon. J. F. Ryan has to take the bottle to his hair and do all sorts of other silly things. The Hon. Dr B. P. V. Pezzutti tried it, and look what happened to him. It is very disappointing to hear that some real estate agents—only some, I must admit, and just a couple I am sure—may be trying to rush first home buyers into a decision with claims that the scheme is about to end. Suggestions by some real estate agents that the scheme is about to end are totally wrong and without foundation. I have been in contact with the President of the Real Estate Institute, Mr John Hill, who assures me that he is equally disappointed if some agents are acting in a mischievous manner in spreading rumours about the First Home Buyers scheme. Mr Hill has undertaken to bring this matter to the attention of his members.
The First Home Owners Scheme is, in fact, part of an intergovernmental agreement between the Prime Minister and all the State Premiers. Any change to the scheme would require the agreement of all the States and the Commonwealth Government. There certainly is no such proposal, and there is no chance of the First Home Buyers Scheme being abolished, nor is there any chance of First Home Plus, which gives the stamp duty exemption, being abolished. First home buyers can be assured that both schemes are here to stay. There is therefore no need to be rushed into buying a house for fear of missing out on the benefits of either scheme. Taking the first step into home ownership is a very important and exciting time for home buyers. The scheme is making that first step into home ownership much more affordable. I encourage all first home buyers to take their time and enjoy the experience and not be persuaded into a hasty decision based on uninformed and completely incorrect speculation about the future of the schemes.
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