Australian First Home Buyer’s Grant – The Chance Of A Lifetime

The Australian First Home Buyer’s Grant is intended to help individuals, especially young couples to easily purchase their first home. Grants are given to these people so they can have a jump start in their burgeoning careers.

Because of the high cost of real estate today, many people, especially those who are just starting their careers are deterred to buy their own home. Some are content to rent because it fits their current financial capability.

This is the purpose of the First Home Buyer’s Grant – to help these people start their life and move them a step forward toward independence.

The First Home Buyer’s Grant was first instituted in Australia last July 1, 2000. From 2000 until 2011 the grant stayed at $7,000, by the coming of 2012, the Australian government has announced that the grant will remain at $7,000, though some expect an increase due to the increase of home costs.

First Home Buyer’s Grant is made available to those who purchase a home that is worth at least $600,000. The purpose of this condition is to help invigorate the building of houses and boost the construction industry.

Though the First Home Buyer’s Grant should help first time buyers to more easily purchase their new home, some in the real estate market tend to think that many house prices are artificially increased to meet this minimum threshold. Because of this, some argue that first time home buyers seem to be disadvantaged.

Many potential first time home buyers will be dismayed by the current status of real estate prices. Because of the minimum threshold price increase, many argue that it would be better to purchase a house without the grant at a lower price, than to avail it and acquire a higher level of debt.

Addressing this issue, on January 1, 2012, the house price limit to be eligible for the grant was set at $500,000 to $600,000. This can help people get a discount due to the increase of the grant and the increase of the coverage. An average person can have benefits up to $24,000 due to the First Home Buyer’s Grant.

You can consult a home loan calculator to see detailed information about loans so you can decide if you should apply for a grant and get your dream home now or wait a little longer.

In many areas, the real estate market is softening and many are taking advantage of the situation as an opportunity to buy. With the First Home Buyer’s Grant and falling prices of houses these days, the timing might just be right for you. To own your own home and live the Australian dream.