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first home buyers grant doubled!

October 20th, 2008 at 10:05 pm

We had an announcement last week on television that interrupted the normal show. It was Kevin Rudd (our prime minister) announcing that they would be increasing the First Home Buyers Grant from $7000 to $14000, and the Builders Grant to $21000!
He explained that it was to counter what was happening in other countries where property prices were decreasing. It will help new home buyers and start to create a little more demand for property again (as it was starting to slow). At the same time it's now getting harder again to get loans - so there won't be anyone getting loans who can't afford it (well - there will be LESS people..) Despite what anyone says, I think it's a good move. I know that we can afford it, and I know that with the first home buyers grant, it will be going straigh onto the loan, or to help pay for any outstanding solicitors fees.
*sigh* if only we could build...
(that would be our dream, of course it won't be happening for many more years...you need a 20% deposit to apply for a loan to build, to get the $21000 grant. You technically don't need a deposit to buy a house at this stage, and you still get the $14 000.)

And yes, I do understand all the negatives on K Rudds move. However, my own personal opinion is that I like his choice. I think it's about time it was done. It will make it easier for some people, and it will help the country in the long run. Yes, it will push prices up. Yes, it will inflate the market. Yes it will make it harder to find a house to buy, because there will be many other people looking. Yes yes yes. I realise all that, but I think it's a good sign the our government is looking to change things, and is trying to get in early to make sure things don't go really bad, not just pay out heaps of money when things collapse and then hope for the best.



8 Responses to “first home buyers grant doubled!”

  1. gamecock43 Says:
    1224541933

    holy cow I hope it spreads to America!!! I will watch for talk of it here. Lucky you!

  2. whitestripe Says:
    1224542253

    lol yeah - except i think what's happening over there is only JUST starting to happen here - so if it were to do any help over there for you guys ... it should have been done last year. Frown

  3. gamecock43 Says:
    1224542455

    Well it would help ME!!

  4. whitestripe Says:
    1224544670

    lol yeah Smile it's been a long time coming. does america have anything like that?

  5. gamecock43 Says:
    1224545298

    We have a $7500 first time buyers tax grant. I will qualify...but it would be nice to be a $14,000 grant!!

  6. whitestripe Says:
    1224546932

    yeah well we are pretty excited about it. 7k was good, 14k just makes it more exciting because we'll be putting it straight back into the loan!
    a tax grant, is that the same as what we get? do you just get a cheque to put in your bank? i am pretty sure what we have to do is, buy the house first, then apply for it, and then they send you a cheque for the $14k after you've bought it, it takes a couple of weeks. (which is why you can't count on it for deposit/fees purposes)

  7. gamecock43 Says:
    1224547403

    Yes, I think how it works here is that you buy a house, and you get the deduction from your taxes that year with a check for the remaining amount. So if you owe $4,000 in taxes, you get the 4k deduction, and a check for $3,000.

  8. whitestripe Says:
    1224548611

    oh ok cool Smile fingers crossed you guys get an increase too!

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