Yes you can apply for the grant as long you gain PR within 12 months of the date you signed the contract to buy or build if that is the case for some.
I think there is no doubt that the boosted grants have kept the market going and therefore supply demand has increased the prices. Will the prices drop once the boosted grants have stopped ??? Tough call, what’s to say that something else doesn’t come in to play that keeps the market moving.
My opinion is that they are definitely overpriced at the moment, when you see houses for $400,000 - $450,000 being marketed to first home buyers!
So what do you do if you are considering buying at the moment, me being one of these people?
Wait until prices drop? if so for how long do you wait and in the meantime continue to rent.
Will they definitely drop once the boost ends and will that be the full boost or the reduced boost (31 Dec 09).
Or as said will something else then come in to play. For us, Stacey has had enough of the wait and now wants her own home (against my instincts), so we will be looking to buy (she wins!) and whether the bonus was a bonus or not remains to be seen.