January 22, 2009
Extend successful first home buyers grant scheme
Australia’s largest independent mortgage broker has called on the Federal Government to extend the boost to the First-Home Buyers Grant for another six months.
The Government, last October, doubled the grant to $14,000 and increased the benefit to those purchasing newly constructed homes to $21,000.
More than 5500 people took advantage of the payment in its first month of operation and Loan Market Group executive director John Kolenda today urged the government to extend the scheme beyond June 30, this year.
Mr Kolenda said direct inquiries from first-home buyers to the Company’s brokers had risen more than 300 per cent since the increased grants were announced.
“First home buyers are out there on the front line for the first time in many years,” Mr Kolenda said.
“There was very little interest from first home buyers throughout most of 2008 but now brokers and property-related websites are being flooded with interest from these sources.
“The increases in the grant and the dramatic downward move in interest rates have helped maintain interest in the property market at the lower to middle level.
But Mr Kolenda said there was a risk of a negative impact when the scheme ended on June 30.
“For that reason I would suggest the Government extend the scheme until at least the end of 2009 to
help avoid that potential adverse impact.”
Mr Kolenda said the global economic downturn and increasing unemployment were of particular concern to Australia’s real estate sector.
“That’s why it’s important to continue a successful scheme such as the increased First-Home Buyers
Grant.” he said.
Namoi Valley Independent
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