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GENEROUS first home buyers' grants could be extended beyond the June 30 cut-off, as the Government seeks to continue stimulating the flagging economy. Housing Minister Tanya Plibersek left open the possibility when she announced that 5385 people took advantage of the scheme in November, its first month of operation.
The news came as further evidence emerged that Victoria's property sales were stalling, with a sharp fall in stamp duty set to slice millions from the state budget in the coming year.
Victorians received only a 15 per cent share of the first home owners' grants, with just 814 people taking it up during November. About 27 per cent of the grants went to buyers in Queensland, while 39 per cent were in NSW.
Under the boosted scheme, announced in October as part of the Government's $10.4 billion stimulus package, grants for first home buyers purchasing established houses were doubled from $7000 to $14,000. First home buyers acquiring a new house are being offered triple, or $21,000, as a way to help the building industry.
The scheme is due to end on June 30 this year. Asked if the Government would consider extending it, Ms Plibersek said: "Of course … we'll look at the effect our measures are having … we stand ready to continue to help Australians to weather this crisis."
Real Estate Institute of Australia president Noel Dyett said first home buyer activity had plummeted throughout 2008, and urged the Government to extend the scheme. 'The release of the boost was timely as the REIA's market research shows a 16.9 per cent decrease in the number of first home buyers at the end of the September 2008 quarter when compared with the September quarter 2007," Mr Dyett said.
But the latest figures from the Bureau of Statistics show first home buyers were regaining a foothold in the market even before the boosted scheme was introduced. First home buyers made up 19.5 per cent of the lending market in October 2008, compared with a low of 16.4 per cent last March |
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