As Australians brace themselves for the global economic shockwave, the Government has announced its “Economic Security Strategy”. The $10.4 billion dollar Government package aims to protect the Australian economy by stimulating the building industry, investment and employment.
Prime Minister, Kevin Rudd, believes that the housing sector is critical to Australia’s economic performance. So part of the package is a $1.5 billion dollar boost to the First Home Owner Grant (FHOG) to counter the predicted decrease in housing demand.
Wilhelm Harnisch, Master Builders Australia chief executive, was quoted in yesterday’s Age by Siobhain Ryan, “kick starting the housing sector is a proven success formula for stimulating economic growth because of the multiplier effects it has on the broader economy, in terms of providing jobs as well as stimulating the manufacturing and retail sectors”.
The increase applies to contracts dated from 14 October 2008 until the end of the financial year on 30 June 2009. Home buyers, who previously received $7000 with the FHOG, will now get $14,000 when they buy an existing home, and $21,000 when they buy a new home.
Victorians building new homes , who already enjoy a Victorian Government grant, will now see the total possible Government assistance jump from $12,000 to $26,000 (for those building in the Melbourne metro area) and $15,000 to $29,000 (in regional Victoria).
Only contracts signed by the vendor on the 14 October 2008 and onwards qualify the purchaser for the extra cash. No doubt, many home buyers are fuming because their contracts are dated before the cut off point.
Further information about the First Home Owner Grant visit realestatedocuments.com.au or click on the link below: