The federal budget was announced tonight with an announcement that First Home buyers will have another 6 months of boosted grants. 3 months at the full rate and 3 months at a halved rate. The boosted grant will end 31 December 2009.

I really don’t understand where the Rudd Government is going with this… the extension should have been alot longer and been more focused on new property. Treasurer Wayne Swan said that the initial boost was a success but wasn’t prepared to continue the boost to help support the Australian economy for more than 3 months at the full rate.

I understand the boosted grant can’t continue forever, however the major impact to the overall economy is far greater than the cost to the government in the short term.

So far, according to Wayne Swan, the first home owners boost had already helped 59,000 people achieve the great Australian dream. One would now assume that some panic would be removed from the first home buyers market while first home buyers have a little more time up their sleeve to find the right property for them.

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Some First Home Buyers in Victoria are jumping for joy as new plans are announced for the states First Home Buyers Grant. The grant has been extended by 12 months with some modifications. It is now  focused heavily on new home buyers. The state bonus that was $5,000 has now been increased to $11,000 from the 1st July 2009. Further incentives have also been put in place to encourage home ownership outside of Melbourne in regional Victoria. Where First home buyers were once getting $3,000 for a purchase in regional Victoria, they will now be receiving $4,500 from 1 July 2009. The First Home Buyer state bonus will be avaiable for those purchasing under $600,000.

“Premier John Brumby said today the new package was aimed at helping Victorian families into their own homes sooner by offering $22,500 for first home buyers purchasing a new home in regional Victoria, $18,000 for a new home in metro Melbourne and $9000 for an existing home as of 1 July this year.”

This is a big commitment by the State Government, however the positive effects on this should be well worth it. Further to this, this statement also reduces the pressure of the Federal Government to continue their First Home Buyer Bonus. The focus on the Federal Budget tomorrow night will give us an inidication of where the Rudd Government sees the place of the Australian property and construction industry in the recovery from the current economic turmoil that Australia and the rest of the world are in.

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