Lynn Levitt

First Home Buyers Boost the Market

All we’ve seen in the news lately is how the first home buyers are buying homes in droves buoyed by the government’s increased grant. I have friends in Melbourne who are trying to buy their first home in Preston, 10kms from the city and they are struggling to get an offer in before properties sell! Properties they are looking at are selling quickly and often above the asking price.

We are seeing the same sort of response here in Queensland with numbers up by over 300%.

This is exactly what we said would happen back in October when the grant increase was announced.

MORE than 42,000 people have taken up the federal government’s first home buyers grant since extra money was poured into the scheme last October, new figures reveal. Under the government’s $1.5 billion first home buyers boost, the first home buyers grant was doubled from $7000 to $14,000. Those first home buyers who purchase a new home receive an extra $7,000 to take the total cost of government assistance to $21,000.
Australians have been taking up the boost at a rate of more than 12,500 a month, Housing Minister Tanya Plibersek says.

The boost combined with low interest rates has meant that thousands of first home buyers are entering the market.

“A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy,” Ms Plibersek said.
NSW has seen the highest uptake, with 14,404 first home owners receiving the boost, followed by Queensland and Victoria (9,319 and 8,632 respectively).

About 4,200 first home buyers have entered the market in Western Australia since October, more than 3,300 from South Australia and 1,135 from Tasmania.

Both territories recorded the lowest uptakes with 703 grants awarded in the nation’s capital and 404 in the Northern Territory.

“First home owners, builders and developers have been telling me that the First Home Owners Boost is working. Some builders are also starting to see signs of more second and third home buyers,” the housing minister said.

March 28, 2009 – AAP

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