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Six more months for first home grant
Tuesday, May 12, 2009
Those buying their first home have another six months to locate their dream dwelling and still benefit from last year's boost to the first home owners grant scheme.
The first home owners grant was lifted from $7,000 to $14,000 for existing dwellings and to $21,000 for new homes as part of the $10.4 billion stimulus package unveiled by the government in October last year.
The more generous scheme was set to expire on June 30 but has been extended due to the ongoing impact of the global financial crisis.
But under changes announced in the budget on Tuesday night, people who enter into contracts on or before September 30 will still be eligible for a grant of $14,000 for an existing dwelling and $21,000 for a new home.
The more generous scheme will then been phased down, and end after December 31.
Between October 1 and December 31, the boost will be halved, meaning first home buyers will receive a total of $10,500 for established homes and $14,000 for new homes.
Treasurer Wayne Swan said the first home owners boost had already helped 59,000 people achieve the great Australian dream.¶
"In light of the continuing global uncertainty and the success of this initiative, tonight, I announce that we will extend the boost for a further six months, including three months at the full rate before stepping it down," he said in his budget speech.¶
Data released this week showed first home buyers accounted for 27.3 per cent of all home loans approved in March.
Housing and real estate groups welcomed the decision to extend the boosted first home buyers grant.
"The housing industry has been ravaged by the global financial crisis and the budget decision to continue the boosted first home owners grant means thousands of jobs will be secure and frenetic buying will be avoided," the Housing Industry of Australia said in a statement.
Independent mortgage broker Loan Market Group said the government's extension of the grant would provide some certainty for first home buyers, the residential real estate sector and housing industry.
"The real estate market was at risk of a downturn if the boosted grant was allowed to expire as scheduled on June 30," Loan Market Group executive director John Kolenda said.
"It's welcome news that the government has heeded persistent calls from Loan Market Group and other organisations to extend the scheme.
"It shows that they are carefully considering the state of the property market."
Raine & Horne CEO Angus Raine said the move provided a fillip for both first home buyers, and the property market.
"It will ... help first home owners continue to get off the rental treadmill and grab a foothold in the property market," Mr Raine said.
- AAP
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