Australian PM Kevin Rudd confirmed on April 23rd that the Boost Component of the FHOG, widely credited for helping to bolster the Australian property market during the difficult times of the Financial crisis, will end on June 30th.
" It ( the boost ) has had a real effect. We're still measuring it's full effect, but I think it's very important that as a community we understand that deadlines are imposed for a particular purpose. All good things must come to an end", he concluded.
The original grant of $7,000 will remain. The results of this termination will require time to evaluate, however given that the strength of the market for properties to $500,000 has been to a large extent underpinned by the boost, there are expectations of strong sales in this price bracket between now and the end of the financial year as buyers take advantage of the final couple of month's opportunity.
Investors working through Aussieproperty.com have over the last months been surprised as to the apparent strength of the market. Properties have often sold before auction and attempts to negotiate the price for these properties has more often than not been in vain.
We will now hae to wait and see if the market softens during the first months of Financial Year 2009/2010. According to many in the construction industry and Real Estate,Sales, the removal of the boost will allow the market to collapse.
" It ( the boost ) has had a real effect. We're still measuring it's full effect, but I think it's very important that as a community we understand that deadlines are imposed for a particular purpose. All good things must come to an end", he concluded.
The original grant of $7,000 will remain. The results of this termination will require time to evaluate, however given that the strength of the market for properties to $500,000 has been to a large extent underpinned by the boost, there are expectations of strong sales in this price bracket between now and the end of the financial year as buyers take advantage of the final couple of month's opportunity.
Investors working through Aussieproperty.com have over the last months been surprised as to the apparent strength of the market. Properties have often sold before auction and attempts to negotiate the price for these properties has more often than not been in vain.
We will now hae to wait and see if the market softens during the first months of Financial Year 2009/2010. According to many in the construction industry and Real Estate,Sales, the removal of the boost will allow the market to collapse.
