Australians would prefer the coming Federal Budget to have measures to boost the property market rather than more income tax cuts, a national survey has found.

An online poll conducted by Australia’s leading independent mortgage broker Loan Market Group found more than 60 per cent of respondents wanted the May 12 Budget to encourage investment in residential real estate.

Thirty two per cent of those surveyed hoped the boosted First Home Buyers Grant would be extended beyond its scheduled June 30 expiry date, while 30 per cent supported incentives to encourage investors back into the property market.

In contrast, only 21 per cent of the 700 respondents supported further income tax cuts and 17 per cent believed there should be increased spending on infrastructure projects.

Loan Market Group Executive Director John Kolenda said the survey results highlighted
growing uncertainty about the direction of Australia’s residential real estate sector if the expanded grant scheme ends on June 30.

Mr Kolenda said doubling the First Home Buyers Grant to $14,000 for established homes and $21,000 for newly built properties had provided a solid foundation for the Australian property market during the global economic crisis.

“We are urging the Government to extend the boost to the grant for another six months and our survey shows strong public support for that stand and concerns about the impact of ending the scheme in its present form,” Mr Kolenda said.

“It’s also interesting that almost as many people seeking an extension of the boosted First Home Buyers Grant want to see something done to bring more investors back to the property market.

“More than five million Australians own a home and while there is a desire for housing to be more affordable, people don’t want to see property prices crash as they have done in the United States and the United Kingdom.

“A lot more people are concerned about the value of their homes than they are about getting more tax cuts.”

Mr Kolenda dismissed claims that the increased grant had inflated property prices and made thousands of first-time borrowers vulnerable to bankruptcy if they join the growing jobless queues.

“The grant has provided stability for the residential real estate sector and those people entering the property market are borrowing under a much stricter lending regime,” he said.

The May online survey looks at whether people think the Federal Government is doing enough to regulate the banking sector.

People can participate in the May survey by visiting www.loanmarket.com.au or www.xinc.net.au or www.home-loans.com.au

Loan Market Group survey results:

Q: What would you like to see in this year’s Federal Budget?

• More income tax cuts: 21 per cent
• An extension of the boosted First Home Buyers Grant: 32 per cent
• Increased spending on infrastructure projects: 17 per cent
• More incentives to encourage investors back to the property market: 30 per cent