Treasurer talks first homes in Lorne

FIRST home buyer loan approvals have increased strongly over the last two years with 115,000 approved in the last financial year alone – the largest number since 2009-10.

This has seen first home buyers’ share of new residential lending rise from 13.7 per cent in October 2016 to 18.1 per cent in October 2018 to be at its highest level in six years.

Federal Treasurer Josh Frydenberg spoke to the media in Lorne last week, saying that new lending to first home buyers during the Rudd-Gillard years fell from 19.1 per cent at the end of the Howard Government to 16.3 per cent as the youth
unemployment rate surged by nearly 3 percentage points.

He said the recent improvement in first home buyer activity was driven by a number of factors, including the Coalition’s plan for a stronger economy and the creation of more than 1.2 million jobs.

“Employment is the foundation for buying a first home and with more than 100,000 young Australians getting a job last financial year – the highest number on record – the future looks bright.

“Over the past year, Coalition Government initiatives have also played an important role in supporting people realise their dream of owning a home.

“The government has successfully implemented a number of measures announced in the Reducing Pressure on Housing Affordability 2017-18 budget package.

“This includes initiatives such as the government’s First Home Super Saver Scheme and incentives for older Australians to downsize and put proceeds of sale into their super.

“This is not the time for Labor’s disastrous new housing taxes, which independent experts declare will damage market confidence and weaken investor demand.

“The major credit rating agencies have warned of the negative consequences to the broader economy from a sharp fall in house prices, which could stem from a larger pullback in investor demand putting at risk our AAA credit rating.”