To ensure the property market stays strong, the government has put in place some radical changes for 1st home buyers by increasing the grant by up to 300%.
1st home owners are a small part of the total property market and so we may think that the increased grant won’t affect things much. There are two reasons why this will have a significant impact on the Australian property market.
- Overall confidence for investors because of rising demand.
- The new grant is split into two parts. If you’re buying a second-hand home you will receive $14,000 dollars. But if you purchase a new home the government will give you $21,000.
The reason for this is to stimulate the building industry as well as increase supply. The result will be an increased demand for land and house & land packages.
Our clients who have land holdings in and around the southeast of Queensland and especially house & land packages should see an increase in demand over the next few months and into 2009.
The Housing Industry Authority states on their website, “The increase in FHOG has invigorated confidence in the industry and lifted the spirits of many aspiring first home buyers looking at purchasing a new dwelling. Already, builders are reporting an increase in inquiry levels. “
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