The Australian - March 18, 2009 12:00am
COMMONWEALTH Bank chief Ralph Norris yesterday warned that the Rudd Government's first home-buyer grant could lead to a residential property bubble if it became a permanent fixture in the housing market.
Most home lenders and brokers are pushing for an extension to the incentives, which include grants of $21,000 for new dwellings, beyond June when they are due to end.
Mr Norris warns that such a move could tempt borrowers with little capacity to repay debt to enter the market.
"I think the first home buyer grant has provided quite a stimulus to the market," he said.
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Jenny
COMMONWEALTH Bank chief Ralph Norris yesterday warned that the Rudd Government's first home-buyer grant could lead to a residential property bubble if it became a permanent fixture in the housing market.
Most home lenders and brokers are pushing for an extension to the incentives, which include grants of $21,000 for new dwellings, beyond June when they are due to end.
Mr Norris warns that such a move could tempt borrowers with little capacity to repay debt to enter the market.
"I think the first home buyer grant has provided quite a stimulus to the market," he said.
Read more...
Jenny