Buyers who are taking advantage of the First Home Owners Grant are providing the housing market with a much needed boost. According to recent data from the Loan Market Group new home loans granted to first time home buyers have increased significantly and are expected to continue to climb throughout the year.
The main reason that so many of the new loans are going to new home buyers is due to the First Home Owners Grant offered by the government as a stimulus package to encourage home sales and help new home buyers finally be able to buy their own home.
Double The Money
The government recently doubled the stimulus package to give new home buyers up to $21,000 for a new home. The original figures allowed new home buyers to get $7,000 for a home that was already built and $14,000 for a home that they had built. But the government recently increased those figures allowing $14,000 for a home that was already standing and $21,000 for a home that is custom built on the owners land. This was part of a $10.4 billion economic stimulus bill that was passed last year. The First Home Owners Grant has been a responding success and it is estimated that up to 170,000 people will take advantage of the grant money to get into a home of their own.
A Possible Increase In The Time Allotted To Use The Grant Money
Due to the popularity and success of the government grant money there is talk of extending the deadline given to use the money. An extension would help all of the first time home buyers avoid any delays in the process of getting approvals and pre-approvals and help them to get into their own home easier.
Property Options Australia
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Hi Sean,
Yes, the First Home Owners Grant was extended. Many people took advantage of this offer last year during the Global Financial Crisis. The slowing economy caused some of the lowest interest rates in decades and there were bargains everywhere.
I still feel like the government grant pushes up the prices of houses in the first home buyers bracket but it has helped the economy. So, maybe it’s all good.
I really praise the Australian Government for taking the initiative to bring new people to the property market through the first Home Owners Grant. As Jazz has already mentioned it has been extended although I think it has been lowered back to the original 7k/14k levels.
Just so you know I think the title may have meant to be Boom not Boon…although he is a top Aussie criketer.