ANZ has joined a growing number of lenders that offer finance for small properties, announcing it would lower its lending standard on residential units from 50 square metres to 40 sq m.

Analysts are now speculating on whether this will stimulate inner-city apartment sales and also have the effect of bringing forward developments.

ANZ requires that the properties be residential (excluding serviced apartments and student accommodation); on a strata title and have living space (excluding balconies) of 40 sq m or more.
The units must have one bedroom, a functioning kitchen, bathroom and its own laundry.

The Rudd Government today announced a $10.4 billion Economic Security Strategy to strengthen the Australian economy in the face of the worst global financial crisis since the Great Depression.

Part of the Strategy is that first home buyers will be eligible for grants of up to $21,000 under a decisive Rudd Government initiative designed to stimulate housing activity and give first home buyers a better chance in the housing market.

More than 150,000 first home buyers are estimated to benefit from the time-limited scheme.

Under the First Home Owners Boost:
• First home buyers who purchase established homes will have the grant which they are currently entitled to doubled from $7,000 to $14,000; and
• First home buyers who purchase a newly-constructed home will receive an extra $14,000 to take their total grant to $21,000.

First home buyers will be eligible for the First Home Owners Boost from today (14 October, 2008).
All contracts entered into by 30 June, 2009 will be eligible for this new additional assistance.

The Rudd Government will invest around $1.5 billion in the housing market over 2008-09 and 2009-10 through this initiative.