Time to add some real help to the ‘Help to Buy’ Schemes

Changes to the buying process rather than access to more funding is the key to helping first home buyers according to industry specialist, Debra Beck-Mewing.

“The Government is not looking at solid and immediate help they can provide first time buyers because they’re running down the same old track of thinking the answer can be fixed with ‘funding’”, said Beck-Mewing, Chief Property Strategist at The Property Frontline.

The Federal Government has recently announced a Senate Inquiry into how lending and financial regulation impacts home ownership and to explore ways to reduce lending costs.

“It’s great to see more housing support coming for struggling home buyers, but if the Government really wants to help they need to make structural changes to the buying process so first time buyers have a chance of getting into the market”.

“The market is running fast in most areas of Australia, making the process of buying a home almost impossible to navigate successfully even for experienced buyers, let alone those trying to do this for the first time.

There’s currently more than 18 different avenues of grants, stamp duty exemptions, and support packages available Australia-wide and yet first time buyers or those in hardship are still the smallest active buying group.

“What first time buyers need is a change to the buying process because the system is currently weighted towards giving power to sellers.  Suggested changes include :

• making building and strata reports mandatory for sellers to provide
• more detail in contracts Australia-wide
• longer mandatory cooling periods
• set standards of legal advice to be provided to buyers.

“The Government should also consider providing buyers with access to independent advice and support so they can increase their decision making and negotiation power, otherwise all they’re doing is creating more confusion and driving prices up,” said Beck-Mewing.

“Any active buyer will tell you there’s much more to buying successfully than just access to money, so it’s time the Government tackles these process adjustments and ensures all new buyer schemes include an allocation to receive independent assistance, or for the Government to offer this kind of support as a component of the funding.

The latest ABS data shows the number of first home buyers remaining low, hovering between 8,500 and 9,500 buyers per month – well below the peak of nearly 18,000 achieved in 2022.

“Buying property is always a challenge but the current market is moving fast, so buyers need to be well informed to take advantage of the support packages on offer.

“We’re seeing an increase in the number of first time buyers coming to us for help.  Many buyers are overwhelmed just trying to understand the nuances of the different options available and struggling to select which option is best for them. “They’re also worried about making sure they don’t