First home grant ends in September

The first stage of the phasing out of the First Home Owners Grant Boost (FHOG Boost) will happen on September 30.

From October until December it will reduced from $14,000 to $10,500 for established homes and $21,000 to $14,000 for new ones.

From 2010, it will return to the $7,000 pre-incentive level.

“It’s important for first home buyers to act now if they want to receive the maximum grant before it is phased out,” Real Estate Institute of Australia (REIA) president David Airey said.

“To assist consumers with eligibility requirements and information about obtaining the Boost, the government has a website to direct potential first home buyers to their relevant state or territory revenue office,” he said.

The decision made…to extend the Boost as part of the Federal Budget reflects the position the REIA presented to government, which was to extend the Boost for both new and existing homes and introduce a plan to phase the Boost out gradually.

“It is great to see the number of first home buyers in Australia that have been able to secure a home since the FHOG Boost was implemented,” he added.

“Australian Bureau of Statistics (ABS) figures have shown that the proportion of first home buyers has increased from 19.5 per cent in October 2008 to a record 28.5 per cent in May 2009. Government figures show that at the end of July, 137,000 homes had been purchased with the aid of the FHOG Boost,” according to the executive.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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