February 12, 2009
First Home Buyers Grant Boost’s Property Market
The increased first home buyers grant has given the property market a major boost, an independent mortgage broker said yesterday.
The Loan Market Group said new data showing a surge in the number of home loans granted to first-time buyers in December is likely to continue into the first quarter of 2009.
But its executive director John Kolenda said the Federal Government should extend the increased first home buyers grant at least until the end of this year.
New government data showed first-time home buyers made up 25.4 per cent of home loans granted in December, the highest proportion since December 2001 – the height of the last major housing boom.
As part of last year’s $10.4 billion economic stimulus package, the government doubled the first home buyers grant to $14,000 for the purchase of existing homes, and to $21,000 for newly built properties, until June.
“The latest Australian Bureau of Statistics figures underline that the increase to the first home buyers grant has been one of the most successful measures in the first $10.4 billion economic stimulus package announced last October,” Mr Kolenda said.
He said the seven-year high in first home buyer commitments showed the property sector would benefit from the government extending the increased grants until at least the end of 2009.
“Prime Minister Kevin Rudd predicted 150,000 people would take advantage of the increased grant when he announced the first stimulus package, but I believe we could easily have a record number in excess of 170,000 if the grant was extended,” he said.
“An extension would also help those first-time buyers who are experiencing delays in getting approvals and pre-approvals.”
The Daily Telegraph
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