4 Selling Weekends Till First Home Buyer Grants Drop

4 Selling Weekends Till First Home Buyer Grants Drop

Media Release

Friday 3 September 2009

There are just four weekends till the financial assistance for first home buyers is reduced by $3,500 for the purchase of an established home.

Robert Larocca, REIV spokesperson said that the financial assistance for first home buyers had been a success and not only helped thousands of Victorians into their first home but provided targeted stimulus helping the residential property market through difficult times in 2008.

"We expect more first home buyers to be active in the next few weeks as they seek to take advantage of the higher levels of assistance.

"The impact of the grant has been considerable, in June 2008 there were 2,592 loans given to first home buyers in Victoria, a year later that increased by 73 per cent to 4,494 in June this year.

"That impact is being seen in the established house market with seven out of ten grants being given to purchasers of established homes.

"The sensible decision to progressively reduce the assistance rather than end it suddenly will help to ensure there is not a great rush.

"It's important to know the details about these changes if you are house hunting in the next few weeks.

"Before the 1st of October first home buyers are eligible for a total of $16,000 for an established home. That assistance is comprised of the First Home Owners Grant of $7,000, the First Home Bonus of $2,000 and the First Home Owner Boost of $7,000 from the Federal Government.

"For contracts entered into after 1 October first home buyers in the market for an established home will be eligible for a total of $12,500 in assistance.

"For a newly built home the total assistance is $32,000 before the 1st of October and $25,000 after.

"At the end of the year assistance for an established home will be reduced again to a total of $9,000 as the Federal Government's First Home Owner Boost comes to an end.

"With interest rates and rental vacancy rates at a record low there has never been a better time to start buying your own home," Mr Larocca concluded.

MEDIA COMMENT:
Robert Larocca 9205 6622 or 0409 198 350


SOURCE: The Real Estate Institute of Victoria