MORTAGE CHOICE

Federal Budget = Property Market Positives -Boost extension a bonus to first homebuyers and our economy

Mortgage Choice welcomes both the First Home Owner Boost (FHOB) extension and the $22billion infrastructure program outlined in the Federal Government's 2009 Budget, seeing them as positive initiatives for the property market that will assist in improving the accessibility and supply of housing, the quality of facilities in local areas and supporting jobs within the industry.

The Government's commitment to continuing an amended FHOB for six months beyond the existing 30 June deadline and its further investment in infrastructure are moves that should stimulate activity in the building and construction sectors, in turn supporting employment, improving housing supply and helping first homebuyers build their deposits.

In an economy that is relatively weak at the knees, moves to prop up Australia's property market in a manner that positively impacts jobs, consumer sentiment and housing are welcome.

Local franchise owner for Mortgage Choice, Australia's largest independently-owned mortgage broker, Russell Crook said, "Moves that help Australians meet the challenge of property ownership and improve consumer sentiment are to be applauded."

"The extended boost to the First Home Owner Grant scheme will certainly bring a smile to the faces of first homebuyers who were rushing to buy before 30 June. They are now eligible to receive the Boost in its current state until 30 September, or a ‘half-boost' for the three months to 31 December.

"The ABS housing finance figures for March saw loans for the construction of dwellings grow by 13.9% and by 8.8% for the purchase of new dwellings. This impressive result demonstrates the positive effect that Federal and State Government stimulus and incentives have had on the market, alongside other influential factors such as low interest rates, slow housing price growth, improved affordability, healthy population growth, increasing rents and historically low rental vacancy rates.

"The newly announced initiatives will continue to support the job market and, as importantly, will enhance consumer confidence. The owner occupied market especially - first homebuyers and those selling to first homebuyers and upgrading - will continue to assist in propping up our domestic economy, which has performed much better than most since the global economic crisis began. It will hopefully lead to a recovery in the investor market also.

"Coupled with last week's Reserve Bank decision to keep our cash rate steady, these moves create a positive outlook for many aspiring and existing property participants.

"As an aside, all borrowers must be aware that, as inflation starts to pick up and the economy shows increasingly positive signs of recovery, interest rates will eventually rise. They must prepare themselves for these rises and housing price growth - which, as with most aspects of the financial world - benefit some and disadvantage others."

For More Information Contact: The Mortgage Choice Team 08-93009322 All Hours JOONDALUP, BURNS BEACH, YANCHEP, HEATHRIDGE, OCEAN REEF

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