End of September signals the phasing out of the Boost

The first stage of the phasing out of the First Home Owners Grant Boost (FHOG Boost) will happen in alittle over a week, on September 30.

From October until December 2009 the FHOG Boost will be reduced from $14,000 to $10,500 for established homes and from $21,000 to $14,000 for newly constructed homes.
From 1 January 2010, the FHOG will return to the $7,000 previously provided to first home buyers of newand established housing, before the implementation of the Boost.
“It’s important for first home buyers to act now if they want to receive the maximum grant before it is phasedout,” said Real Estate Institute of Australia (REIA) President, Mr David Airey.

“To assist consumers with eligibility requirements and information about obtaining the Boost, the Government has a website1 to direct potential first home buyers to their relevant state or territory revenueoffice,” he said.

The decision made by the Government to extend the Boost as part of the Federal Budget reflects the position the REIA presented to Government, which was to extend the Boost for both new and existing homes and introduce a plan to phase the Boost out gradually.

“It is great to see the number of first home buyers in Australia that have been able to secure a home since the FHOG Boost was implemented,” concluded Mr Airey.

“Australian Bureau of Statistics (ABS) figures have shown that the proportion of first home buyers has increased from 19.5 per cent in October 2008 to a record 28.5 per cent in May 2009. Government figures show that at the end of July, 137,000 homes had been purchased with the aid of the FHOG Boost,” he said
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REI Media Release 24th September 2009