The Australia New Home Owner Grant scheme was introduced on 1 July 2000 to help offset the effect of the GST on home ownership. This scheme was set forth nation wide and was funded independently by the states and territories and administered under their own individual legislation. The First Home Owner Grant initially gave a one time grant payment of up to $7000 to first time home buyers who were eligible to receive the benefit in order to help stimulate the housing market and promote home ownership.
The Australian Government recently announced a First Home Owner Boost to help supplement the States and Territories funded First Home Owner Grant Scheme. With the new boost first time home owners who purchase homes that are already in existence will receive an additional $7000 bringing the total amount of support from the grant up to $14,000. In addition to that first time home owners who build a new home will receive a bonus of $14,000 making their total grant allowance $21,000.
The increase in the Federal Government’s First Home Owner Grant has provided that extra push needed to get some Australians out of their rentals and into a home of their own. The Government’s offer expires on June 30 of 2009 so first time home buyers will need to act fast in order to take advantage of the higher rates being paid out.
Some Australians who plan to use the First Home Owner Grant stated that the extra money will help out with expenses such as settlement costs and relocation fees. Having that extra money to depend on is a pretty big incentive to purchase a home for the first time. While most Australians said that the extra money will not affect the price of the home they buy, all did seem to agree that having that extra money offered is a real incentive to purchasing their own home.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Hi Sean,
The First Home Owner Grant was a good idea. I still think it pushed up the prices of houses at the lower end of the market. I worry that it helped some people get into houses they couldn’t afford.
But, on the whole for most people and the economy; it was a good thing.