First Home Latest

Reporter: Graeme Butler

The clock is ticking for first home buyers wanting to snap up a bonus of $14,000 from the government. As of the first of July the

$21,000 available now will shrink back to $7,000 unless people like Phil Naylor from the Mortgage and Finance Association of Australia has his way.

"We're asking them to extend it for a further period. We think it's been so successful over the last few months. It's a good initiative and it would be a shame to see it die out before it has a chance to carry out its role properly" says Phil.

Perth Builder Dale Allcock says business in the first home buyer market has boomed since the grant was increased back in October.

"We've seen around a 25% increase in sales since the grant increase was announced in October, so if we compare September sales through to about February sales this year, it's around about 25% increase" says Dale.

Unless the grant is extended, Dale Allcock fears the industry will be hit hard.

"We would be hopeful that we can really push hard to minimise the effect. It would be a great concern that we're laying off trades people and laying off apprentices and that's something we don't want to contemplate".

The State Government has just moved to cap the first home buyers grant to homes under $750,000. That will come into effect on July 1st.

"I think it's long overdue. I think that anyone who is spending over $750,000 on their first home and land are in a fortunate position that they don't need government assistance" says Dale.

For who do qualify it's still a difficult decision. Jump in now and cash in on the extra grant money or wait and hope property prices fall further and pray the government extends the grant.

According to financial planner Brenton Jones from Perth's Future Wealth Planners the security of your job should be the first point on your buy now or later check list.

With unemployment tipped to increase, couples particularly should consider a loss of income in their mortgage calculations.

"I think the main thing is people need to be confident that they see themselves as one of the 95% of the population that will have a job and make that decision confidently" says Dale.

"I'm hopeful they will extend it. We think there's a good strong argument for it. It's been a good initiative on their part and quite often governments get criticised. I think on this one they should be congratulated and continue it to go further".