Confusion surrounding the end of the first home owners boost could be taking heat away from the first home buyer markets in NSW and the ACT, Raine & Horne has claimed.
Raine & Horne chief executive officer Angus Raine said there is evidence some buyers are confusing the boost, which will end on 31 December with the FHOG that is set to continue in 2010.
The boost subsidy currently provides first time buyers with an additional $3,500 for existing homes and an extra $7,000 for new homes.
“In addition the NSW Government’s decision to extend the $3,000 New Home Buyers Supplement to 30 June 2010 is also adding to buyer confusion,” Mr Raine said.
“The Federal Government was very good at creating the initial hype. However it has failed to fully educate the consumer about when the FHOB ends.”
“However January 1 does not represent the end of Federal Government subsidies for first time buyers.
“The $7000 FHOG will still be available to eligible applicants.”
Andrew Tregent, proprietor of Raine & Horne Ettalong and St Huberts Island on the NSW Central Coast, agreed that many first time buyers were confused.
“We are getting calls from significant numbers of people about the availability of the FHOG in the New Year,” Mr Tregent said.
“Many of these aren’t ready to buy yet even with the additional boost and are concerned they’ll miss out completely.
“The Federal Government promoted the FHOB heavily including buses, bus shelters and other advertising. However in winding it back, we haven’t seen the same concentration of marketing explaining how the FHOB will be phased out.”