First home buyers in New South Wales are set to benefit from an increase in the first home owner grant cap as of next year.
From January 1 2011, buyers seeking the $7000 first home owner grant will be able to buy homes valued up to $835,000 – up from $750,000.
Urban Taskforce chief executive Aaron Gadiel welcomed the change.
“Eligibility for the first home owners grant has widened because the housing supply has made all homes more expensive than they need to be,” he said.
According to Mr Gadiel the adjustment to the cap would ensure that homes priced up to 1.4 times the Sydney median price would be included in the scheme.
Home buyers in New South Wales’ capital, Sydney, will especially benefit from the increase in the cap with the median Sydney house price sitting at $591,000, according to RP Data – the highest of any capital city.