Make first-home buyers' grants like HECS loans, says Australian Institute of Architects

The Australian Institute of Architects isn’t keen on the government First Home buyer grants because they essentially come from tax payer money, which the Institute believes could be better spent.  Instead they are suggesting a HECS-style interest free government loan to be paid back on the sale of the property.  At the moment, first-home buyers who sign contracts on new homes before June 30 next year will receive a government grant of $21,000 and $14,000 on an existing home. The Institute is suggesting this be raised to $30,000 and their assumption is that if each person moves around the average 7 to 10 year timeframe, then capital gains should cover the $30,000 loan payback to the government.

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