It might not be all bad news for first time buyers who missed out on the beefed-up first home owner’s grant (FHOG) last year, with fresh calls for the now $7,000 grant to be increased permanently.
The Real Estate Institute of Australia (REIA) yesterday put forward a proposal to the government to increase the FHOG to $15,000. It also suggested the grant be indexed to median house price movements annually – an idea that has already been suggested by some property commentators.
With the grant having sat at $7,000 for just over ten years now, it would appear it may well be time to reassess that figure.
However arguments that the FHOG simply inflates prices are likely to reignite.
Just what the government makes of the REIA’s proposal will remain to be seen; we’ll keep abreast of the issues and keep you informed.