It’s the 64 thousand dollar question – With the housing market once again collapsing, just like in 2008, will the government re-introduce the first home buyers’ grant to prop it back up?
With a federal election due next year, Aussie Home Loans boss John Symond expects a new boost towards the end of the year.
He told the Property Observer, “Probably my cynical self says six to 12 months ahead of the next election, it would not surprise me that the government might stimulate housing by helping first-home buyers and they may possibly introduce a bonus or a boost to the first-home owner’s grant.”
According to Treasury, the government introduced the original first home owners’ boost in 2008 to encourage first timers who had been saving for a home to bring forward their purchase and prevent the collapse of the housing market. Bringing forward so much demand, has left a large void now that the free money is no longer available.
Figures out today show the first home buyers grants have also helped some 1,200 South Australian investors enter the market, or at least until they had to pay the grant back.
South Australian Minister for Finance, Michael O’Brien told the Advertiser, “This program is designed to help South Australians get a roof over their head, not to help them into an investment property.”
» First-home owner’s boost could return this year: John Symond Property Observer – Friday 6th January 2012.
» 1200 forced to repay home grants – The Advertiser, Tuesday 10th January 2012.