Federal Government Extends Boosted First Home Buyers Grant

The Australian government has made a crucial move to bolster the real estate market by extending the boosted first home buyers grant, which was set to expire on June 30. The decision will see the grant continue to provide up to $7,000 for new homes and $3,500 for established homes until September 30, before being phased down to its original form. This development has been welcomed by housing and real estate groups, which see it as a lifeline for the industry, preserving thousands of jobs and avoiding a potential market downturn.

Key Takeaways:

• The boosted first home buyers grant will now apply for homes purchased on or before September 30, 2009.
• The grant will then be phased down to an extra $A3,500 ($US2,653.35) for established homes and $7,000 for new homes by December 31, 2009.
• After that point, the $7,000 first home owners scheme will continue in its original form.
• The Housing Industry of Australia has welcomed the decision, citing the need to secure thousands of jobs and avoid a market downturn.
• Independent mortgage broker Loan Market Group praised the government's extension of the grant, stating it will provide some certainty for first home buyers, the residential real estate sector, and the housing industry.
• Executive Director of Loan Market Group, John Kolenda, emphasized the importance of the decision, stating "It's welcome news that the government has heeded persistent calls from Loan Market Group and other organisations to extend the scheme."
• The real estate market was considered at risk of a downturn if the boosted grant was allowed to expire on June 30.

Statistics:

• Up to $7,000 will be provided for new homes under the extended grant.
• Up to $3,500 will be provided for established homes under the extended grant.
• The grant has been extended until September 30, 2009.
• The original grant will be phased down to $3,500 for established homes and $7,000 for new homes by December 31, 2009.
• The $7,000 first home owners scheme will continue in its original form after December 31, 2009.

Sources:

• "Housing and real estate groups have welcomed the federal government's decision to extend the boosted first home buyers grant" - Asia Pulse, May 12.
• "The Housing Industry of Australia said in a statement" - Asia Pulse, May 12.
• "Independent mortgage broker Loan Market Group said the government's extension of the grant would provide some certainty" - Asia Pulse, May 12.
• "The real estate market was at risk of a downturn if the boosted grant was allowed to expire as scheduled on June 30" - Asia Pulse, May 12.
• (AAP) 12-05 2043