In the last installment we discussed how the Government had decided to extend the First Home Buyers Grant and looked at the new figures that would be offered to first time home owners. But the grant affects more than just those who are buying new homes.

The Cost To The Government

The estimated cost to the Government to extend the time allotment for taking advantage of the grant is $539 million. The Government is hoping that this money will help to stimulate activity in the housing and construction industries providing valuable jobs for electricians, plumbers, builders and other trades people. With the global economy in a downward trend the Government hopes that the extension of the grant will help to boost the Australian economy. The Government has received praise from housing and construction groups for the move as it is expected to continue to stimulate construction and provide jobs.

The Overall Effect Of The Government Stimulus Package

Since the inception of the first stimulus package offered by the Government last October over 60,000 first home owners have taken advantage of the free money and cashed in their payments. New building approvals were on the rise for the last couple months and the Housing Industry Association stated that the policy offered by the Government has provided a modest turnaround in building approval figures.

Not All Good News

For all the good news that is reported on the boost from the Government some people do not feel that it is as helpful as it appears to be. There are always two sides to every story. Figures from the Real Estate Institute have suggested that the boost has been inflating the prices of houses around Australia with the biggest impact being seen in the lower end of the housing market.

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The Federal Government recently announced that they will be extending the First Home Owner Boost through to the end of the calendar year. This means that first time home buyers will be given an additional six month to take full advantage of the free government stimulus money being offered.

Good News For First Time Home Buyers

The ability to cash in on free government grant money to purchase a new home is one that many first time home buyers do not want to pass up. With the original deadline of June 30th fast approaching there was much debate and discussion about the possibility of extending the deadline to give more first home buyers a chance to take advantage of the money provided. Even though the deadline has been extended the news is not all good.

Amount Of Funds Offered Diminishes As Year Comes To An End

In extending the deadline the Government is hoping to allow more first time home buyers to get a helping hand with the purchase of their new home. But waiting until the last minute to cash in on this great deal will cost you some money. Starting in October the benefit offered will be halved.

The existing First Home Owner’s Grant will stay the same, providing $7000 to new home owners who purchase a home that is already built, and $14,000 to those who build a new construction home. Starting October 1st the Government will provide new home owners with a modest $3500 for existing homes and $7000 for newly built homes.

Breaking Down The Numbers

When combined with the First Home Owner’s Grant first time property owners will be getting $10,500 for existing homes and $14,000 for newly built homes, down from the previous $14,000 for existing homes and $21,000 for new construction that is currently being offered. This change will occur on October 1.

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Property Options Blog © 2006 - 2009

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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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Property Options Blog © 2006 - 2009

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The new year has brought a lot of first time home buyers out into the open, looking to take advantage of the Australian Government’s First Home Owners Grant. Real Estate search sites have reported a substantial increase in activity since the new year began. Real estate developers and home builders have also reported an increase in interest since the new year began.

Government Pushing To Get New Buyers Into Their Own Home

First time home buyers have been given a very sweet deal by the government. Under the First Home Owners Grant first time home buyers would receive $7,000 to help assist them with the cost of purchasing a home. For those Australians who wished to build a new home the government was handing out $14,000. But recently those numbers have gone up, making it easier than ever before for a first time home buyer to get into a new home. The grant money has increased to $14,000 for first time buyers who move into a home that is already built, and $21,000 for those who wish to build their own home. In some states the local government is adding to the pot and sweetening the deal even more. In some areas new home buyers can receive up to $29,000 in grant money. Australians are advised to check with their local government to see if any additional benefits are being offered to first time home buyers.

First Home Owners Grant Has Positive Effect On The Real Estate Market

The First Home Owners Grant has made it possible for many Australians to get into a new home. Property that before was out of their price range has now become more affordable. The grant money has also helped to boost the confidence of the real estate market in general.

Property Options Australia
Property Options Blog © 2006 - 2009

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