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BUYERS of new homes in Australia have been given a nice Easter present by the Federal Government, which has increased the first home buyers grant from $7,000 to a useful $14,000.
However, the higher grant will only apply to people buying a new house. Those buying an established house will still be able to claim only $7,000. Both grants are available only to people buying their first home in Australia and this naturally also applies to migrants.
Eligible houses include those being built or already built but not lived in or sold.
Contracts for new constructions must be signed between March 9 and December 31 this year.
Building work must start within 60 days of contracts being signed, with building completed within 12 months of the contract being signed.
The grant was originally brought in to offset the 10 per cent Goods and Services Tax on new houses, last July. This had the immediate effect of hitting the building industry, with the loss of thousands of jobs throughout Australia.
The Government has increased the grant to create jobs and says it has nothing to do with any federal election, which the Liberal government could lose.
But the higher grant, coupled with falling interest rates could see both new and established house prices rise this year..