Mortgage Choice applauds initiative expected to significantly boost housing market.
Mortgage Choice financial services franchise, Best in the Mortgage and Finance Industry*, congratulates the Federal Government on its momentous step to increase the First Home Owners Grant to $14,000 for all first homebuyers and to $21,000 for those buying new housing as their first home.
The Housing Industry Association expects the initiative to boost the number of dwellings built over the next year by 15,000. At present, building activity has been on the decline for the past nine months.
Mortgage Choice home loan franchise Managing Director, Paul Lahiff said it is a bold and positive move by the Government that will improve the sentiment throughout the entire property sector.
“I would think the majority of housing industry participants – from buyers to builders, real estate agents, lenders and mortgage brokers – will be excited and pleased by this historic initiative,” he said.
“Australia’s growing population, increasingly tight rental vacancy rates, slow release of land and the rising cost of building materials are all contributing to a demand for housing that is not being met as well as it could be.
“Add this to property prices that are, on average, trending upwards, and you can see why potential first homebuyers are faced with a significant challenge. Recent ABS statistics reveal that first homebuyer loan approvals have remained relatively steady at 17/18% of all approvals for some time, and below the longer term average of 21/22%.
“The doubling of the First Home Owners Grant for all first homebuyers and a tripling for those who purchase a newly-built dwelling, along with the recent significant decreases in interest rates, should provide a much needed boost to the Australian housing market.
“The great Australian dream of owning your home is still very much a part of our mindset, and those desiring their own piece of this country will be grateful for all the assistance they can get.
“Mortgage Choice congratulates the Government on its continued demonstration of commitment to the housing affordability cause, and for first homebuyers in particular”.
* 2008 Mortgage & Finance Association of Australia Awards
17-Oct-2008