 Housing market "better off" once grant is reduced
Home buyers may not be worse off when the boost to the first home buyer grant ends at the end of the year, according to Aussie Home Loans boss John Symond.
Speaking on Radio National Breakfast, Mr Symond said the boost had over inflated house prices in some areas.
"Many first home buyers have probably paid too much," he said.
"We may see some of those properties easing back in price to give people a better chance to go out and find themselves a good deal."
From October 1, the boost will be halved for both new homes and for those buying established homes. Then the grant in reduced again in December and back down to original amounts by January 2010.
Mr Symond says banks, lenders and mortgage brokers have seen a reaction to the anticipated rate rises with an increase in enquiries.
Some economists are predicting rate rises as early as next month as business confidence shows signs of a recovery.
Mr Symond says that if you are struggling with repayments and are concerned about rate rises you could consider fixing your rate, or splitting your loan half fixed and half variable, if it will make you feel more secure.
With rates for fixed mortgages already rising, many assume it wont be long before variable rates go up as well. Most mortgage experts suggest the time to fix your rate has probably passed.
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