26/11/01

Good news for first home buyers - Grant extended, so act now …

Good news for homebuyers again. Since March 10, 2001, the grant for first home buyers/builders had doubled for the rest of this year. It was $7,000, and it had then increased to $14,000 for new homes, and has remained $7000 for existing dwellings. The New Home Owners' grant was introduced last year to offset the effects of the GST.

The $150 million temporary rescue package for the building industry, which was earlier in March this year, comprised incentives for people who build their first home or buy a new rather than existing dwelling. Then, the grant was available to buyers of new homes, including apartments and townhouses, until 31 December 2001.

On 9 October, 2001 the Federal Government has just announced that it would extend the First Home Owners Grant for new homes to June 30 next year, 2002. The $14,000 grant for newly built first homes will continue, but at a reduced rate of $10,000 until July 1 rather than reverting in January to the $7,000 that applies to the first purchase of established homes.

The first-home buyers grant extension will mean first home buyers will be able to claim a $10,000 grant towards construction or purchase of a new home, which will apply for six months from 1 January next year.

The first home grant for the purchase of established homes will still be held at $7,000, which means that there remains a significant incentive for first home buyers to select a new home over an established dwelling.

Below are the general conditions to qualify for the existing $14,000 homebuyers grant, served as a guide, but readers are also advised to seek independent advice.

How to qualify for the $14,000 homebuyers grant:
• Build new home, or buy one already built but not previously occupied or sold.
• The house must be your first home in Australia as an owner
• You must be an Australian citizen or permanent resident
• If you are married or living in a de facto relationship, you must make a joint application with your partner. Neither of you may have owned a home before, individually or with any other person.
• $7000 grant remains for first home buyers who buy existing homes
• $14,000 grant reverts to $10,000 for new homes for new contracts signed from January 1, 2002 and then to $7,000 in July. It had been scheduled to revert to $7,000 at the end of the year.
• The required date of building commencement for contracts signed after January 1 will be 26 weeks from signing instead of 18 weeks.
• The required date of building completion will be 18 months later instead of 12 months.

John Howard, Prime Minister of Australia, said the extended subsidy for home building is expected to be a key driver of the economy into next year, aimed at boosting housing construction. This grant would also add to the impact of current record low interest rates. This is all good for the economy.

Central Equity's latest release, coming soon, will be located in the premier inner city precinct of Southbank. Southbank is a relatively small "golden triangle", bound on all sides, and will soon be fully developed. Values of properties are affected by many factors and one of them is location. Also, the limited number of apartments in Southbank also make it an appealing proposition for investors, as the only opportunity to buy into a Southbank apartment will be to buy one that has been previously occupied and pay full stamp duty for first home buyers, this also means they could miss out on the current $14,000 level grant offered by the Federal Government and receive $7,000.

For Central Equity's new release coming soon, early enquiries are currently being invited. Interested buyers can visit the new display suite on City Road at the corner of Balston Street, Southbank.

Central Equity's development are always located in prime Melbourne addresses, which make the apartments popular, well rented and has appreciation values when resold.

Demand for good rental properties on Southbank is at a new high. Vacancy rates are down to less than 1.7% for Central equity properties.

From the successful public release of Central Equity's most recent project, "The Sentinel" Concierge Apartments, it has shown that many buyers recognise the value of living in such a prime location.

Investors should act now and take advantage of the new home buyers grant! .