An estimated 150,000 people have taken advantage of the increased first home owners grant. And new figures show that the property market is being supported by first home buyers.
Fresh government data shows first-time home buyers made up 25.4 per cent of home loans approved in December, which is the biggest share since December 2001.
Executive director of the The Loan Market Group John Kolenda is hopeful first homebuyers will continue to purchase property well into 2009.
"The latest Australian Bureau of Statistics figures underline that the increase to the first home buyers grant has been one of the most successful measures in the first $10.4 billion economic stimulus package announced last October," Mr Kolenda said.
When the government increased the first home buyer grant last year, it was to be temporary - until 30 June 2009 - but there are now calls for the boost to be extended to the end of the year. The grant was doubled to $14,000 for those buying an existing home, and tripled to $21,000 for those constructing or buying a new home.
Along with lower interest rates and falling property prices, the government grants are helping first homebuyers to purchase affordable property.
The boost to the grant was part of the Rudd Government's first stimulus package and has prompted a rush of first home buyers into the market. The increased amount is proving popular and is hoped will support the housing market through the current tough global financial situation.
Many property developers and real estate agents are joining in the call for the boost to be extended to allow for more first home buyers to enter the market.
Join the discussion on First Home Owners Grant
|