First Home Owners Boost

Wednesday, 13 May 2009

By Fairfax Digital

Last night the Federal Government announced that the current First Home Owners Boost scheme will continue in its current format until October 1, 2009. This means that those buying existing homes will receive $14,000 and those buying new homes $21,000.

Adjustments to the scheme from October 1, 2009 will see the First Home Owners Boost scheme halved. Which means those buying existing homes will receive $10,500 and those buying new homes $14,000.

As of December 1, 2009 the First Home Owners Boost scheme will cease and the existing $7,000 grant will continue to be available to all first home buyers.

Economist for Australian Property Monitors, Matthew Bell comments, "This decision will continue the stimulus to both the housing construction and development sector, as well as the sales activity at the more affordable end of the property market.

First Home Buyers now have some extra time to consider their potential purchase of a home to take advantage of the Boost. As always, first home buyers should carefully take into account their ability to meet mortgage payments in the future when interest rates inevitably rise, as well as their employment situation in a tough economy.

The gradual removal of the boost should minimise any price falls in the more affordable end of the market associated with the end of the Boost, and continue to stimulate sales activity in the generally slower winter market."