NSW extends first home grants
First home buyers in NSW will have the boosted federal government first home buyer's grant extended for an extra six months. The NSW government has also announced, in last week's state budget, that stamp duty on newly built homes worth less than $600,000 will be cut by 50 per cent.
Some experts warn that there is a danger that the state and federal government incentives for the housing industry could create a housing price ‘bubble' at the lower end of the property market which will burst when overextended mortgagees can no longer afford their mortgages.
Some first home buyers are buying houses for $60,000 more than they were worth just 12 months ago in order to get the $14,000 in federal government grants.
Source: Sun Herald