First Home Owners Grant Extended

FHOG  for both new and existing homes extended and an introduction to phase the Boost out gradually. The Commonwealth Government has made an accurate and overall assessment of the property market in their decision to extend the FHOG Boost for six more months, however, it will only continue at the full rate until 30 September 2009.

From October until December 2009 the FHOG Boost will be reduced from $14,000 to $10,500 for established homes and from $21,000 to $14,000 for newly constructed homes.

This decision will benefit the property industry greatly and have tremendous flow-on effects to those in the business of servicing the property industry such as solicitors, conveyancers, financiers, valuers, removalists, furniture suppliers and a range of trade’s people.

Source: Real Estate Institute of Australia

First Home Owner’s Grant

Australia’s Prime Minister Kevin Rudd said “The First Home Owner’s Grant Boost as you know we’ve indicated that that will conclude within a very fixed and finite time frame.”  “We’re still measuring the full effect but I think it’s very important that as a community we understand that deadlines are imposed for a particular purpose. It’s had strong, useful results so far but I’ve got to say, all good things must come to an end”

There has been no formal decision made on whether or not the FHOG Boost will be extended beyond 30 June 2009.

Source: Real Estate Institute of Australia

Australian Bureau of Statistics data on Housing

ABS data released last week shows that the number of building approvals increased by 7.8% in seasonally adjusted terms during the month of February 2009, the first monthly increase since June 2008. The figures are an indication that low interest rates and Government initiatives are translating into increased demand for housing.

There were also positive news from the ABS released this week with Housing Finance data for February showing an increase in the number and value of dwelling commitments. The total value of dwelling commitments increased 1.3% in seasonally adjusted terms, and the total number of dwelling commitments increased 0.4% over the month.

The most encouraging statistic was that the number of first home buyer commitments as a percentage of total occupied housing finance commitments increased to 26.9% in February, the highest proportion since the ABS began this series in 1991.

Source: Real Estate Institute of Australia