Fed: Take-up of home owners grant slowing

AAP General News (Australia)
08-29-2009
Fed: Take-up of home owners grant slowing

CANBERRA, Aug 29 AAP - The number of Australians taking up the federal government's
first home owners grant is declining ahead of the scheme's rollback next month.

New figures released by Labor on Saturday showed by the end of July more than 137,000
people had taken up the grant since it was boosted last October.

But for the first time during that period, monthly breakdowns indicated the amount
of people taking advantage of the more generous grant was shrinking.

In June, home owners grant take-up peaked at 20,389 but last month it dipped to 18,939.

The grant was doubled to $14,000 for established homes and trebled to $21,000 for new
properties as part of the government's first stimulus package.

After September 30 it will be reduced to $10,500 for established homes and $14,000
for new homes until December 31, before returning to its original $7,000 next year.

The drop off in grant applications is being felt in every state and territory.

However, NSW leads the way when it comes to total take up, with almost 50,000 people
receiving the grant there in the 10 months to July.

Housing Minister Tanya Plibersek said the grant's positive impact on the economy was
evident in new Australian Bureau of Statistics (ABS) housing finance data.

The data showed the number of loans for new constructions by owners has increased by
55 per cent in the year from June 2008, while the purchase of new homes is up 47 per cent
over the same period.

First home buyers made up 27.1 per cent of all new loans for owner occupation in June,
one of the highest levels since the ABS started collecting this data in 1991.

"The first home owners boost, combined with lower interest rates, has attracted tens
of thousands of first home buyers into the market," Ms Plibersek said.

"A strong housing market is critical for underpinning confidence and supporting jobs
in the Australian economy as we battle the worst global recession in 75 years."

AAP bsb/cjb

KEYWORD: HOUSING

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