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First home buyer grants, low interest rates, easy loan terms (eg. low deposit loan), negative gearing all combine to push up housing prices.
Offering first home buyer grants with current excessive house prices simply creates new debt slaves; in future the house will likely be worth less than it is today but the buyer will be stuck with a large loan and be very vulnerable to rising interest rates. Most people have never experienced anything other than rising house prices and they can't imagine crashing house prices, even though there are examples in other western countries.
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