Five Saturday auctions left before first home grant cut

ASPIRING home owners have until the end of the year to buy before they miss out on their $15,000 government incentive.

Only five Saturday auction days remain before stepping into the market for the first time becomes $10,000 more expensive. Picture: David Thomas

ASPIRING home owners have until the end of the year to buy before they miss out on their $15,000 government incentive.

The first home owner grant will be slashed to $10,000 in NSW on January 1 for new homes worth up to $750,000.

Labor MP Greg Warren has blasted the government in parliament over its decision to cut the scheme by one-third next year.

"From a purely economic perspective the cut makes no sense. In the last financial year alone the New South Wales Government received more than $9.2 billion in stamp duty revenue, largely contributed to by first home buyers," he said.

"It boggles my mind that the government is more than willing to force first home buyers into a lifelong cycle of debt or force them into the rental market when they generate such a large amount of revenue for the state."

The government provided 8014 grants last year, a 25% increase on 2013.

To October this year, 7638 first-time buyers had taken advantage of the package.

Now only five Saturday auction days remain before stepping into the market for the first time becomes harder for would-be property owners.

"In light of the current economic environment and the challenges in the property market it is appropriate to keep the first home owner grant in place," Mr Warren argued.

"External bodies such as Deloittes think the same."

-APN NEWSDESK