First Home Owners Grand Extended

It was one of the most hotly anticipated issues leading up to the Treasurer's speech, and now we know the boost to the first home owners grant will be continued in full until October 1.

From then, it will be halved to $10,500 for existing homes, and $14,000 to new homes. The boost will end on December 31, although the existing $7000 first home owners grant will continue.

Kevin Rudd had previously hinted the boost would end by prophesising "all good things must come to an end" in the weeks leading up to the Budget.

The boost to the grant has cost the Government around $480 million this year.

Mr Rudd's comments sent prospective first-time buyers into a panic, sparking a rush on weekend house auctions. Whilst those who rushed to purchase in the past few weeks might feel dudded, real estate industry professionals will no doubt be cheering the development.

Source: By Chelsea Mes and Edmund Tadros - NEWS.com.au - May 13, 2009 12:01am