FHOG comments criticized

by Rachel Seymour 21/05/2009

 Prime Minister Kevin Rudd is defending comments he made in the lead up the federal budget surrounding the first home buyer grant.

Mr Rudd hinted in the weeks leading up to the Budget that the boost to the first home owners grant would end on it's original deadline of June 30.

This caused a mass of excitement and interest for first home buyers wanting to take advantage of the boosted handout.

"The first home owner's boost, as you know, we have indicated that will conclude within a very fixed and finite time frame," Mr Rudd said in April.

"It's had strong, useful results so far, but I have got to say all good things must come to an end."

 But in the Budget speech it was announced that the boost would continue for longer.

A spokesperson for Kevin Rudd told news.com.au yesterday the Prime Minister stood by his comments.

The conflicting comments sparked calls from the opposition and industry groups to provide clarity over whether the boost would continue.

The grant was doubled last year to $14000 and up to $21,000 as part of the Government's $10.3 billion stimulus package, and tripled for those buying a newly-built home. But the increase has been blamed for creating a bubble in house prices at the lower end of the market.



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source: The Australian
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