First Home Buyers Boost extended

[Dolly]

Last night the Federal Government announced that the current First Home Owners Boost scheme will continue in its current format until October 1, 2009. This means that those buying existing homes will receive $14,000 and those buying new homes $21,000.

Adjustments to the scheme from October 1, 2009 will see the First Home Owners Boost scheme halved. Which means those buying existing homes will receive $10,500 and those buying new homes $14,000.

As of December 1, 2009 the First Home Owners Boost scheme will cease and the existing $7,000 grant will continue to be available to all first home buyers.

Not sure how it will affect each State so it might be wise to check the relevant States' Revenue Office.

Dolly

[anj1976]

isnt this a wise move? to boost the economy? since most people who are looking fwd to buying will try and buy it before the grant amount goes down.
bad for people but surely will work in favor of the economy.

[kaz101]

I saw an 'expert' talking about this on the news the other week.

He was saying that the home owners grant increase is setting people up for a fall since they are over extending themselves and when the interest rates go up (and they will go back up), then they will be in trouble....

As an investor we always check that the rental income will cover the mortgage payment even if the interest rates go up a fair bit, but people rarely check this when buying their own home.

Regards,
Karen

[anj1976]

so they dont have fixed rate of interest, here in India we are given an option for both. fixed which is slightly higher thn the other but atleast one isnt bothered with what comes next.

[Min]

Originally Posted by anj1976

so they dont have fixed rate of interest, here in India we are given an option for both. fixed which is slightly higher thn the other but atleast one isnt bothered with what comes next.

Hi
yes Australian home loans are available as fixed or variable or a combination of the two (part of the amount fixed, part variable). A fixed rate is higher than variable. A lot of people fixed their interest rates when the rates went up a year or two ago now they have dropped significantly and people are wishing they had not fixed their rate!