Grants cut down but sales to hold up

First home buyers of new homes will be entitled to $14,000 of federal government assistance from today, October 1, down from the $21,000 grant paid since last October, when the boost was announced as part of the federal government’s response to the global financial crisis.

First home buyers who purchase an existing home will be eligible for grants of $10,500 from today, down from $14,000. Economists said buildings approvals and housing finance applications would fall in the medium-term future.

However other drivers are expected to hold up sales including population growth, low interest rates and good economic conditions.

Source: Sydney Morning Herald