Property investment expert Roy Sanderson says extending the first homebuyer bonus will benefit Pakenham’s property market and the economy. 31353 Picture: Stewart Chambers
By Melissa Grant
THE Federal Government’s first home buyer bonus should be extended to keep Pakenham’s house prices affordable, ease pressure on rents and keep the economy afloat.
That’s the opinion of local property investment expert Roy Sanderson, principal of RJ Sanderson and Associates, who is calling for the grant to be available for an extra six months for new home purchasers.
The call comes after the Federal Government announced it would only keep the bonus in full for three months from July 1. It will then halve its $14,000 bonus for new properties come October, before scrapping it on 31 December.
Mr Sanderson said it was important to retain incentives for the purchase of new homes to help stimulate the economy.
“I think it needs to be extended until we can see signs the economy is recovering,” he said.
“We have the fear of the economy not doing well and high unemployment – home building is one way we can get out.
“It would secure construction jobs, keep established house and rental prices from becoming unaffordable, and help elevate the economy out of recession.”
Mr Sanderson said the first homebuyers market had experienced small growth in recent times, which had been beneficial for Melbourne’s south eastern suburbs.
Pakenham real estate agent Derrick Brown, director of Gerard Collins, said the town had benefited from the home buyers bonus.
Mr Brown said the extension of the grant for another three months had given prospective buyers more breathing space.
“Prior to the announcement there seemed to be a reasonable amount of urgency (to buy),” he said.
“Now they’re making sure they have a good look at what’s around.”
Mr Sanderson, who has offices in Pakenham, Berwick and Dandenong, said the State Government had recognised the need to encourage people to build in its 2009/10. He said Spring Street was moving to double its grant to $11,000.
First homebuyers purchasing new homes are currently eligible for $21,000 of Federal Government assistance, made up of the $14,000 bonus and the existing $7000 grant under the First Home Owners Scheme.
The $14,000 bonus for those purchasing new homes will be halved to $7000 from October 1, and abolished as of 31 December.
Treasurer Wayne Swan said it was a “responsible phasing out” of the highly successful measure.
Mr Brown said extending the Federal Government first home buyers bonus for those purchasing new properties wasn’t simple.
“It’s probably one thing to say the first homebuyer grant should be extended, but other things need to be addressed,” he said.
“We have a shortage of developed land ready to go and issues with structure plans and infrastructure.”
However, Mr Brown urged prospective buyers to make use of the bonus while it was on offer.
“Getting something is certainly a benefit because plenty of people in the past haven’t had an opportunity to get a grant,” he said.
