The First Home Owners Grant has been a resounding success since its inception and has created very positive effects on the housing market in the last year. Due to the incredible success of the program many are calling for extensions in the deadline to allow as many people as possible to take advantage of the stimulus package.
As it stands now the only contracts that are eligible for the First Home Owners grant ate those that were entered into between the time period of October 14, 2008 and June 30, 2009. With the deadline fast approaching to take advantage of the grant many would like to see the deadline extended.
Grant Recipients Are Helping The Housing Economy
There are a lot of reasons why many people would like to see the deadline extended. For starters new home buyers accounted for the sale of 72,000 properties last year alone. These are homes and properties that may not have sold if it had not been for the government grant money. The first home owners grant has helped to create a boost to the economy by providing some much needed cash flow.
First time home owners grew in number from 9,901 in October to 14,154 in December and as the deadline draws closer those numbers are expected to continue to go up. Some people are afraid that once the deadline comes in June that the housing market will begin to fall again without having the stimulus of the first time home owners grant money.
The Time Is Right For First Time Buyers
The combination of the grant money offered, historically low interest rates, the high price of rentals and low rental vacancy levels has provided a climate that is very appealing to first time home buyers. The time has never been better for someone to buy or build their very first home.
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Tags: economy, First Home Owners Grant, first time home buyers, government grant money, housing, housing economy, housing market, property options blog
{ 3 comments… read them below or add one }
Hi Sean,
The First Home Owners Grant is really helping people get into their own homes. I’m just a little concerned about what happens when these people start to have trouble affording their mortgages.
I think sooner or later, most people have trouble paying their mortgage. I think the situation is even more dire if you have no money in reserve.
The First Home Owners Grant really does entice people to enter the real estate market. I know it is how I got in. As you have pointed out it really does stimulate the economy that is presently under pressure from the GFC.
Just so you know there is a small typo in the second paragraph.