Rudd and the great grant mystery

The debate over whether prime minister Kevin Rudd will extend the bonus on first-home buyers grant beyond June 30th heated up again on Friday (April 24th) with the revelation from government insiders that he will carry the bonus over.

The anonymous tipsters told the Daily Telegraph that the first-home buyers grants would continue, but they would be reshaped slightly to favour consumers building their own property.

Under the current arrangements, homebuilders can claim $21,000 from the government to go towards the cost of construction, up from the original $7,000.

However, Kevin Rudd was quick to refute the claims from the insiders, saying that the scheme had to come to an end and insisting that there would be no extension.

Elsewhere, the Australian has reported that first home buyers should be wary of taking advantage of the grant and low-interest home loans because of the risk they could fall into negative equity – owning a home that is worth less than they paid for it.

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