First home buyers grant must be used wisely

The first home buyers grant could be used wisely to manage the purchase of a property or to reduce the total amount being borrowed or unwisely to increase the total borrowing amount by up to $70,000 says economists. Professor Steve Keen from the University of Western Sydney says the first home buyers grant increase will exacerbate problems in the housing market that have made property unaffordable. He also claims that the grant will increase the likelihood of first home buyers borrowing more than they can afford. The grant has been doubled from $7,000 to $14,000 for people who buy existing properties and tripled to $21,000 for people who build a new home.

Source: Herald Sun