Boost Helps Over 153,000 First Home Owners

New figures show the Rudd Government’s Nation Building Economic Stimulus Plan continues to support housing sector jobs and first home buyers, with more than 153,000 Australians using the First Home Owners Boost to the end of August.A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy as we battle the worst global recession in 75 years.

The Rudd Government is pleased with the success of the First Home Owners Boost, with over 153,000 first home buyers entering the market since October 2008.

NSW continues to lead the way, with over 53,000 applicants taking up the Boost – over one third of the national total.

The First Home Owners Boost, combined with lower interest rates, has helped thousands of Australians realise their dream of home ownership.

It is also creating jobs for our builders and tradespeople when we need them most

.The First Home Owners Boost’s positive impact on the economy is evident in July’s Australian Bureau of Statistics housing finance data.

First home buyers made up over one quarter of all new loans for owner occupation and overall the number of first home buyers rose by over 73 per cent in July 2009 compared with the same period last year.

The total number of new loans for the construction of dwellings for owner occupation was up over 57 per cent in July 2009 compared with July 2008, and also the total number of loans for new owner occupied dwellings rosed by over 52 per cent over the same period.

From October 1, the Rudd Government will reduce the Boost from $14,000 to $10,500 for existing homes, and from $21,000 to $14,000 for new homes. The Boost will end on 31 December.

A gradual phasing out of the First Home Owners Boost is the responsible way of helping the market to re-adjust as the grants reduce.