Six Month Extension for First Home Owners Boost

Tanya Plibersek today welcomed the six month extension of the First Home Owners Boost while visiting first home buyers in Sydney’s south west.

Extending the Boost will support more Australian jobs and help more Australians realise the dream of home ownership.

Under the extension announced in the budget, until September 30, 2009:

• First home buyers who purchase a newly constructed home will continue to receive an extra $14,000 to take their grant to $21,000; and
• First home buyers who purchase established homes will continue to have their grant doubled from $7,000 to $14,000.

From October 1 until December 31, 2009:

• First home buyers who purchase a newly constructed home will receive an extra $7,000 to take their grant to $14,000; and
• First home buyers who purchase established homes will receive an extra $3,500 to take their grant to $10,500.

Phasing out the First Home Owners Boost will allow the market to re-adjust gradually.

The First Home Owners Boost is part of the Rudd Government’s response to the global recession. A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy.

The First Home Owners Boost, combined with low interest rates has brought first home buyers back to the market in record numbers.

Over 59,000 Australians benefited from the First Home Owners Boost between October 2008 and March 2009 – over one third in NSW.

ABS Finance Data for March showed that first home buyers made up 27.3 per cent of home loans for owner occupiers – a record high in the proportion of first home buyers taking out new home loans.

The Government is also investing $6.4 billion to build 20,000 social housing dwellings across Australia will stimulate the building and construction industry and has been estimated by Treasury to support 15,000 jobs nationally over the next two years.