Real Estate News Archive

Calls for increase to property grant

There are renewed calls to increase the first time homeowners grant to $15,000.

With Australian real estate among the most expensive in the world the chairman of the coalition's backbench treasury committee has called for the increase to help Australian's buy their first home.

The means tested grant would start to reduce when household income reached $100K and would be zero when household income was over $125K.

There are also calls to significantly reduce stamp duty paid by first time homebuyers on real estate transfers.

Previously John Howard has ruled out increasing the fist home buyers grant which assists those entering the real estate market. The government currently provides a $7,000 grant to Australians looking to buy their first property. There have been suggestions that younger Australians should be helped to enter the real estate market through an increased grant.

The government has also ruled out tax changes which would affect real estate investors. The Productivity Commission has previously suggested that tax breaks for property investors have contributed to the property boom. However Mr Howard said that the barriers faced by those trying to enter the property market would not be removed by changes to the tax laws.

Interest rates steady in April

The RBA surprised many economists and kept interest rates unchanged in April.

The delay in raising rates has been welcomed by home owners and first time home buyers alike.

The next release of data important to the RBA is CPI data is available in late April and economists are split as to whether there will be a further interest rate rise.