Will Kevin Rudd Give The Thumbs Up On Extending The First Home-Owners Grant… Here’s The Gossip!
Should you rush out and buy before June 30….
NEW home sales jumped 14.3 per cent in March before the possible withdrawal of first home owner’s grants on June 30. It is the fourth increase in six months and the highest level of sales since July, 2003, says the Housing Industry Association. “Victoria has enjoyed a strong recovery in sales volumes over the past six months,” the association’s Victorian executive director, Gil King, said. “The first home owner’s grant boost for new dwellings is clearly lifting residential building activity and securing jobs within the state and wider Australian economy.”
Property groups have called on the Federal Government to continue the grant past its planned end date.
“We are urging federal and state governments to extend the first home owner’s grant boost for new housing in order to secure jobs and help tackle the chronic shortage of housing across Australia,” Mr King said. The Real Estate Institute of Victoria said continuing the grant and extending it to cover investors would help ease the shortage of rental properties. Vacancy rates have plunged to just over 1 per cent in many parts of Melbourne and rents have continued to rise. Detached home sales in Victoria have been trending higher since bottoming out in September last year.
National sales of new houses and units increased by 4.2 per cent in March, the highest volume since February last year. CommSec economist Savanth Sebastian said since the grants began new home sales had jumped more than 20 per cent from the lows set last December. “The grant has helped to promote housing activity, however further construction and investor interest needs to be promoted,” Mr Sebastian said. “It may be that the grant remains on board for new homes and gets scaled back for existing homes.” He said low interest rates and the June 30 deadline for first home buyers would boost the demand for property. “However property prices are going to be held back to a large extent by worries about job prospects,” he said.
Source; Sun Herald.
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