The Premium Debate: Government should partner with more first home buyers

Inquiries for new build homes have dropped dramatically. Photo / Getty Images

OPINION

Carmen Hall writes the mounting cost of living and a cooling property market combined with surging home loan interest rates have resulted in a downturn in inquiries and sales for building companies. Master Builders Association national vice-president Johnny Calley says inquiries for residential new builds have plummeted between 70 and 80 per cent. Calley warns that some residential construction companies could go bust if they weren't equipped to respond to the sudden decrease. Hall asks: Why can't more money be put into the Government's First Home Partner programme or other incentives which help people buy a home with the Government taking a stake in it?

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Why should all of us taxpayers subsidise a lucky few people's homes? I had to pay 20 per cent interest to get mine, with the help of my parents. Be fair, please.
Stephen H

How is it a government's role to "put a first home buyer into a house"? The government's job is to create the circumstances to enable this. Not another "handout", because in the end, that is what this is going to be.
Gaut S

There seems to be this thought that every company, corporate, sole trader or window washer should work for zero profit, and anyone who makes a buck is 'gauging' [sic]. Never the risk and investment. Labour has bemoaned a 'housing shortage'. Now we will see exactly how the 'record' (private sector) consents transpire in the next 12 months. Inflation has been this Government's doing. And now the building industry will feel its effects. The government of unintended consequences strikes again.
Jan W

This is a bad idea for the same reason that working for families and the accommodation supplements are bad ideas: they all cost the taxpayer, distort the market (in favour of the current asset/business owners and away from everyone else) and are inflationary. If you keep boosting the amount of first home buyers in the market, demand will stay high, prices will increase and rents will stay high (impeding savings), and it becomes a self-perpetuating cycle where those who do not qualify are even further shut out. The number of people who appear to believe that you can solve high prices by throwing money at the problem and increasing demand and/or solve a distorted market by creating more distortion is a genuine indictment of our education system. Make it easy to build houses, make sure immigration does not outstrip supply and the market will fix the problem.
Jonathan S

I think the 65 per cent of people who already own at least one home prefer not to be dictated to by the state to help the other 35 per cent.
Ray S

Pumping more money into a still inflated property market would be irresponsible. This current slowdown is long overdue. The real problem is the price of the land. Take a look around, there is plenty of it! Try getting a building consent on it though?
Mark H

Just relax the loan-to-value ratio restrictions for first home buyers and the market will do the rest.
Jeff R

Why is it so massively important to get everyone into home ownership?
Duane M

It is government legislation that has made it harder to buy a home including increased restrictions on getting a loan.
Max R

Because they don't care about hard-working people and have no idea what's happening on ground level.
Francios N

Mortgage rates were tax deductible for first home buyers in Germany. Just to throw in a new idea. I wonder why our politicians haven't worked that out.
Jutta T

Rent to own is probably a good option.
Mary S

The government would be better off building new homes and then selling them to first home buyers. The net result would be the same, as the first home buyer would then free up a rental property.
Craig C