The Federal Government’s announcement of a $1.5 billion first home buyers package coupled with a drop in interest rates is likely to result in the sale of a number of local properties previously static on the market.

The boost to first home buyers is part of a $10.4 billion emergency economy rescue scheme announced by Prime Minister Kevin Rudd on Tuesday. The scheme also includes one-off payments for pensioners and families, expected to ease the burden heading into Christmas.

The package, a measure to protect the Asutralian economy amidst the current global financial crisis, is to be funded from the budget surplus.

Under the package, the first homeowners grant has doubled from $7000 to $14,000 and tripled to $21,000 for first homeowners who build. Robyn Willis of Robyn Willis First National in Glen Innes said that a number of first home buyers waiting to enter the market have an opportune time. “Certainly lower bracket houses have been slow (to sell on the market) with first home buyers waiting to see what interest rates do. With the first homeowner boost and interest rate drop, now is the time for first homebuyer’s who have been sitting back waiting,” she said.

However, likely first homebuyers have only an eight-month window to take advantage of the scheme. All contracts must be entered into by June 30 next year to be eligible for the grant.

Mrs Willis said Glen Innes is an ideal area to enter the property market. In the city first homeowners face prices of $300,000 for first homes whereas in Glen Innes a first home costs anywhere from $125,000 up.

Glen Innes Severn Council’s Director of Development and Environmental Services Graham Price said he did not foresee a huge influx in the number of development applications presented to council. But did say the positive impact of tripling the first home owners grant, for those who build, could be enough for people who had been thinking about building to make the plunge.