The Federal Government has increased the First Home Owners Grant to $14,000 (for all first home buyers) and to $21,000 for those buying a new home as their first home.
Jamie Pride, realestate.com.au CEO of Australia, welcomes the move by the Federal Government and believes the allocation of funds will provide a much needed boost to prospective home owners and stimulate growth within the property sector.
“The increase of the First Home Owners Grant is a great incentive which gives potential first home buyers the opportunity to enter the market sooner and is a great relief to those who have felt the impact of the credit crisis,” he says.
The Housing Industry Association expects the initiative to boost the number of dwellings built over the next year by 15,000. For the past nine months, building activity has declined.
Mortgage Choice managing director Paul Lahiff says it is a bold and positive move by the government that will improve the sentiment throughout the entire property sector.
“I would think the majority of housing industry participants – from buyers to builders, real estate agents, lenders and mortgage brokers – will be excited and pleased by this historic initiative.”
Lahiff says the great Australian dream of owning a home is still very much a part of our mindset and those desiring their own piece of this country will be grateful for all the assistance they can get.
According the ABS statistics, first home buyer loan approvals have remained relatively steady between 17 and 18 per cent, below the longer term average of 21 to 22 per cent.
The scheme will be time limited. All contracts entered into by June 30 next year will be eligible for the new assistance.
The strategy includes five key measures
- $4.8 billion for an immediate down payment on long term pension reform
- $3.9 billion in support payments for low and middle income families
- $1.5 billion investment to help first homebuyers buy a home
- $187 million to create 56,000 new training places in 2008/09
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