First home owners grant increase was announced and has taken effect from 14 October, 2008. The earlier home owners grant was seven thousand dollars; this amount was raised to fourteen thousand dollars, double the previous amount received recently. Good news is that a first time buyer will receive thrice the amount, making the grant, $21,000. The first time buyer finds it difficult to arrange for the bank deposit, this increase in the grant can help them accomplish their dream of owing a property soon. The strict banking guidelines and the constant rise on interest rates have dampened the spirits of the first time buyers. The boost offered by the government will definitely benefit these buyers.

The soaring price has made it impossible for first time buyers to buy a house in Australia. The increase in the price of property in Australia is the major reason to increase the first home owners grant. It is also noted that the Australian real estate is the most expensive in the world. It is worth noting that five Australian cities feature in the world’s eleven most expensive places to buy a house. People in low income categories are finding it difficult to save from a deposit. Nearly ten percent of Australian pay around one-third of their salary on rent. They do not have sufficient money for savings. So largely, they depend on first time home owner’s grants. First home owners should also be given a reduction in stamp duty imposed by the state government.

First home owners grant increase can be availed by only one member in the family, either of the spouses. If one has availed the other is barred from applying for a grant. You can buy a house without paying any deposit from your pocket. The first home owners grant can be utilized to make a down payment for the mortgage. Based on some conditions first time buyers are also offered a concession on stamp duty. People who stand eligible for first home owners grant are also eligible for stamp duty programs offered by the government. Buyers who are not first time buyers are eligible for ‘Principle Place of Residence Rebate’; you can save around two thousand five hundred dollars on stamp duty. The territory’s office is the right place to put all your queries. There are links in the website that can lead you to information pertaining to specific states in Australia. The recent raise in the grant value has helped first time buyers to a great extent in paying deposits for housing loans. By doubling the amount the government has made a huge favour for all first time buyers in the country. First home owners grant increase is a boon to all new buyers.