With Australia’s economy continuing to rebound, the Federal Government has introduced a First Home Buyer’s Cap on new and existing homes, effective from January 1, 2010. Under the cap, fi rst home buyers will be restricted to purchasing homes less than $750,000 in NSW, WA and Northern Territory and $1 million in Queensland.
Australian Property Monitors recently reported that the national fi rst home buyer’s average is around $502,000 for a fi rst home, still signifi cantly short of most of the caps. But concerns remain, and particularly that the introduction of the cap will restrict joint buyers or big savers who plan on buying homes that are in excess of the caps. That said, many lenders are keen to negotiate discounted rates for loans above the capped price, which means people won’t miss out on the comparatively small grant on offer.