PM flags end of first home owners grant | Herald Sun

THE boost to the first home owners' grant will not be extended beyond June 30, Prime Minister Kevin Rudd has suggested.

"The first home owner's boost, as you know, we have indicated that will conclude within a very fixed and finite time frame,'' he told reporters in Perth. "It's had strong useful results so far, but I have got to say all good things must come to an end."

The grant was raised from $7000 to $14,000 for existing dwellings and from $14,000 to $21,000 for new homes as part of the Government's $10.4 billion stimulus package last year.

Mr Rudd said the Government was still measuring the full effects of the boost but it was important the community understood deadlines were imposed for a particular purpose

PM flags end of first home owners&squo; grant | Herald Sun

First Home Loan Specialists Comment

It is becoming clearer that the Government is softening up first home buyers for the impact of the First Home Owners Grant boost ending on 30 June. Although given recent reports regarding the backlog of loan applications and the rush to buy any property that is placed on the market if it is below $500,000 then it might be the boost has alsready started to come to an end.

Another more cynical argument might be the Government might be taking away before giving back to demonstrate how generous they are amongst what is looking like a terrible budget next month.

However, it must not be forgotten it is only the boost that ending and the First Home Owners Grant Scheme will remain in place with its $7,000 for established properties and $14,000 for new homes. Again, I would not rule out the Government taking the middle ground and only ending the boost for established properties and retaining the $21,000 for new homes.

Equally, the First Home Owners Savings Scheme will also be available so all is not lost for first home buyers.

The question still remains.

Greg Brierley
Principal
T: 1300 884 809
E: greg@firsthomeloanspecialist.com.au
W: www.firsthomeloanspecialist.com.au

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