Extend first home owner grant: Coalition

A third of the federal government's $6 billion spend on public housing should go to the private residential construction sector, the opposition says.

Data released on Tuesday showing a rebound in house prices is another sign that the more generous first-home owner scheme should be extended beyond June, housing spokesman Scott Morrison says. The government, as part of its first stimulus package last year, temporarily doubled the grant available to first home buyers of existing homes to $14,000 and tripled it to $21,000 for buyers of newly-constructed homes. It is leaving any decision to extend the stimulus measure to the May budget.

"Improved property values, together with rising house sales and easing mortgage stress, pointed to the private housing construction sector as a key to stimulating economic activity," Mr Morrison said. "At least $2 billion should be diverted from Labor's over-ambitious program to spend $6 billion on public (housing),"

Instead it should be diverted to the private sector through the first-home owner grant scheme, he said. Mr Morrison said it was "fanciful" that states and territories could spend $6 billion on public housing in less than two years."Last time it took more than eight years to achieve that result," he said.

© 2009 AAP

Extend first home owner grant: Coalition


First Home Loan Specialists

This is the start of the pressure for the First Home Owners Grant Scheme boost to be retained. I am not convinced in the current economic climate and the Goverment's need to control the deficit that they will continue the boost.

With interest rates tipped to come further in the next couple of months, I consider that now is the best time to go out and purchase your first home.

If you are a first home buyer then check out our free 8 part Specal report for First Home Buyer at www.firsthomeloanspecialist.com.au.

Greg Brierley
Principal
First Home Loan Specialists

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