Budget 2009 - First Home Buyers Boost

By Sandy Naidu | May 14, 2009

Back in 2000, the Federal Government announced a $7000 first home owners grant to help the first home buyers enter the property market. In 2008, the Federal Government announced a $7000 first home boost - So since 2008 September buyers of an established home/apartment receive $14,000 and buyers of a new home/apartment receive $21,000. This boost of $7000 was supposed to end on June 30 2009.

There was a huge increase in buyer activity over the past 3 to 6 months - buyers wanted to make their purchase before the boost gets scrapped.

Now in budget 2009, the Government announced that the boost will be continued for another three months and after that it will be phased out and then completely abolished in December 2009.

So if your property settles before September 30th 2009, you will be eligible for the full boost - new or hugely renovated homes/apartment will get $21,000 ; old homes/apartment will get $14,000.

After September 30th 2009, the boost will be cut by 50% for 3 months. So if your property settles between September 30th 2009 and December 30th 2009 - new or hugely renovated homes/apartment will get $14,000 ; old homes/apartment will get $10,500.

After December 30th 2009 the boost will be scrapped. So after this date, all owners will receive only $7000 (first home owner grant only - no boost).

This extension will definitely have a positive impact on the property market. A lot of property experts believe that this boost has saved us of a serious downturn in the property market.

Are you happy with this extension? Share your thoughts below…

Other 2009 Budget Posts:

Changes For Carers’ Income

Pension Income and Pension Age Changes

Superannuation Changes

Paid Parental Leave

Private Health Insurance Changes

Tax Cuts

Budget 2009 Winners and Losers