Excited by the increase to the first home buyer grant? You are not alone, in fact people like it so much they are calling on the government to extend the increase beyond June 30.
Kevin Rudd has come under pressure to extend the increase as new Australian Bureau of Statistic figures show first homebuyers rushed to purchase 11,665 new dwellings in November, up from 9,901 in October. First homebuyers represented 23.6 per cent of the housing market in November, up from 19.5 per cent in October.
Opposition housing spokesman Scott Morrison believes the housing sector is still desperate for long term change.
"... We have a long way to go and we must ask the question: What happens once the stimulus is removed?” he said. "The one-off boost to a discrete section of our housing sector provided by the first-home owners grant is not a long-term answer. At best, it provides a stimulus at the margin while key issues necessary to restore confidence and growth are left unaddressed." Housing Minister Tanya Plibersek is said to be considering the grants, not ruling out an extension to the increase.
In October the grant was doubled to $14,000 for existing homes and $21,000 for new homes as part of a government plan to boost the slowing economy.
Despite encouraging figures for November, a 21.8 per cent decline in housing finance for the construction and purchase of new dwellings in the first 12 months of the Rudd Government is a worrying figure.
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