The Australian federal government’s first home buyers grant has meant property is at its most affordable level in five years for these buyers.

The grant for purchasing an existing property is now $14,000, while the grant for newly built homes is $21,000.

In addition some state governments are helping buyers as well. First home buying in South Australia is assisted with a $4,000 grant as part of efforts to improve housing affordability. The full grant is paid for house purchases up to $400,000, then on a reducing scale up to a $450,000 purchase.

The Housing Industry Association (HIA) says property is at its most affordable level in five years for first home buyers. The HIA First Home Buyer Affordability Index shows the median home loan repayments in many areas of Australia have fallen recently.

The Real Estate Institute of Queensland (REIQ) says there has been a large rise in the sale of houses in the lower end of the market.

However the federal grants are only available until the end of June 2009, with no guarantee that the grant scheme for first home buyers will be extended beyond this time.

REIQ chairman Peter McGrath says he is concerned about what may happen to the market when the increased first home buyers grant expires at the end of June.

Housing Institute Australia business chief executive Brenton Gardner believes young people should work on the premise the grants will not be extended.