first home buyers grant

Even before Tuesday's first official interest rate rise demand for home loans eased for a second straight month in August.

The opposition has stated that increases in interest rates could push thousands of recipients of first home buyers grants close to default.

Experts have warned that though Sydney's property market seems to be staging a remarkable recovery it could be a false down.

Melbourne and Sydney have experienced a substantial slump in the property markets of late, but it looks like national auction clearance rates are again on the rise, driven by a flood of first home buyers keen to enter the market.

When the Government's first home buyers grant and various state funded benefits come to an end they could force lower end house prices down by up to 10 per cent.

A new survey has shown that two-thirds of Australians believe that the Federal Government's first home owners grant is pushing up house prices.

Data released yesterday has shown that the percentage of first home buyers has risen to the highest level on record.

Since the Australian Bureau of Statistics started collecting data in 1991, first home buyers now make up 28 per cent of all homes financed which is the largest proportion recorded since they first began.

Is it possible that the much publicised government incentives for young buyers is artificially inflating the market as the average loan size for first-home buyers has risen by $52,000 - or 23 per cent over the past two years?

Despite last week's Federal Budget revealing that the boost would continue for the first-home buyers grant, Prime Minister Kevin Rudd said that he stands by his comments that he made earlier, hinting that the boost to the first home buyers would end.

A recent survey has shown that it is the best time in seven years for first home buyers to get into the property market.