Treasurer’s advice to first-home buyers: Get a job

OUR Treasurer has some blunt advice for first home buyers wanting to break into the millionaires’ real estate market.

Treasurer Joe Hockey reacts during Question Time today in the House of Representatives, Federal Parliament, Canberra.

JOE Hockey has advice for first-home buyers wanting to breaking into the millionaires’ market for Sydney real estate: Get a job.

The Treasurer laid out his buying guide today as he announced a crackdown on foreign homeowners.

But he also acknowledged it would have to be a really well paid job, not just on average wages, and that it was “reasonably expensive entry costs for first home buyers”.

“The starting point for a first homebuyer us to get a good job that pays good money,” Mr Hockey told reporters in Sydney.

“If you’ve got a good job that pays good money and you have security in relation to that job then you can go to the bank and you can borrow money.

“That’s readily affordable, more affordable than ever. (It’s more affordable to) borrow money for a first home now than it’s ever been.”

Mr Hockey’s department secretary John Fraser last week identified a Sydney housing bubble with rising prices in Melbourne as well.

Mr Hockey today denied housing was unaffordable because people were buying it. But he acknowledged; “It’s expensive. As a multiple of average weekly earnings it is expensive. It’s an expensive city to live in.”

He said the answer was to increase supply to lessen the demand pushing up prices.

“The best response is to build more housing,” said Mr Hockey.

“We want to see state governments continue to approve new developments. We want to see local government step up to the plate and start granting their approval for construction jobs in residential real estate.

“The response is clear: The only way you are going to have a bubble that bursts in real estate is if there is excess supply, and we are a long way from excess supply in the Australian market and particularly the Sydney market.”

Opposition Leader Bill Shorten said the job comment showed Mr Hockey doesn’t understand the pressures on families.

“As if Joe Hockey hasn’t insulted families enough, he’s at it once more. This is ‘poor people don’t drive cars’ all over again,” he said.

The Labor leader accused Mr Hockey of not thinking housing affordability was an issue.

“How are Australians supposed to find the ‘good jobs that pay more’ when unemployment is at its highest levels in more than a decade under his government,” he said.

The Government is hoping some of that demand will be lessened by a crackdown on cashed-up foreign buyers. Mr Hockey some 88,000 Australian residences were by temporary

residents. Data would be matched with Immigration Department to ensure they sold the real estate when they left Australia.

About 26 per cent of the foreign own housing was in NSW, 25 per cent in Victoria, 22 per cent Western Australia, 19 per cent Queensland, four per cent South Australia, 1.5 per cent the ACT, 1.1 per cent Tasmania, 0.2 per cent the Northern Territory.