First Home Buyers Grant: All good things must end

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.

Mr. Rudd opened a can of worms when he hinted that the home-buyers boost would not be extended beyond its original June 30 deadline. Mr. Rudd stated in April that the boost would end within a fixed time frame, and that it had good results but that all good things had to come to an end.

Due to all the speculation, there were reports that first home buyers were rushing out to buy homes before the boost disappeared.

In the same week of that announcement finance Minister Lindsay Tanner told ABC Radio that the government was still considering whether to continue with the grant or to complete on June 30.

The conflicting comments sparked calls from the opposition and industry groups to provide clarity over whether the boost would be continued or not.

In last weeks budget it was announced that the boost to the first-home owners grant will be extended to September 30 from which point it will be halved. The boost will end on December 31, but the first home owners grant will remain.

Kristy Sheppard from Mortgage Choice said that most first- time buyers would feel grateful they had received extra money to put towards purchasing a home.

There has been a great sense of urgency to purchases a home, and although this will probably slow down some what, one would expect to see it continue, till the first cut-off point in September.

Get your quotes now

What to find out more? Enquire now

Published on May 5-nd, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.