Estate agents and mortgage brokers say they are being inundated with calls from first-home buyers, following the decision by the Prime Minister to increase the first-home buyer grant. On Tuesday, Kevin Rudd announced plans to double the grant to $14,000 for those buying an established home, and triple to $21,000 for those building a new home. Builders say people are looking for a bargain, with enquiries at the lower end of the market growing faster.
It is expected that large numbers of first-home buyers will attend home inspections at the weekend, and the mini-boom is a sign that the Government's rescue package mya be working.
Despite fears that the increases will just push up house prices further, a large NSW developer, Landcom, has promised they will not increase property prices and take advantage of cashed-up home buyers returning to the slowing market. Landcom marketing manager Robert Sullivan said the rebates of up to $16,000 on new houses will continue.
"We will not be making any changes to rebates we've currently got on the market," Mr Sullivan said.
"Customers out there have been ... looking around and shopping around for the best deals. It would be very dumb of the market to pass on the new grants in a price increase."
Other agencies say they are being flooded with enquiries from first home buyers. Cornish Group sales manager Colin Lake, says their offices in Camden are busy with first home buyers. Selling new homes in Camden's new Spring Farm estate, the business is busier since Kevin Rudd's announcement. Usually their customers are people buying second and third homes, but with the new grants, first home buyers can now afford new houses.
RP Data researcher Cameron Kusher is expecting more people will be going to open houses on Saturday and testing the waters.
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