First Home Grant (FHOG)

April 6th, 2009 Nits Posted in Home Loans | No Comments »

FHOG is known as first home grant. Every country, every government gives grant to first home buyers. This is just to promote people to buy property, buy their first home in their country, state and city. As most established cities in the world are really expensive for renting. In Australia all state government have fixed grant to first home buyers from last many years. However recently because of global financial crisis, decrease in interest rates and because people are not having enough funds and financial security, they are not willing to spend on property. They basically scare of going in to some long term financial commitments.

Being aware of this situation government is promoting and encouraging first home buyers. All state government in Australia has increased first home grant (FHOG) for all first home buyers. NSW government was giving $7000 grant to first home buyers a year ago. Now they have doubled their grant and giving $14000 to all first home buyers as a FHOG. This grant is for all first home buyers who are buying old properties, I mean already built property & someone is staying there or property which has been built quite long back. For all newly constructed properties there is more grant and person who is buying totally new property is getting $21000 as a grant which is 3 times more than before. This similar situation is with all other state government’s policies. So it is a right time to buy a property if you have on hand cash or fixed financial secure income.