The grant scheme of things Durrant says the changes to the incentives are a measure that will assist buyers only in outer suburbia, particularly western Sydney. KEEPING up with the concessions has been a big job for first-home hunters. Since the GFC rocked overseas real estate markets and threatened to crash our own, the handouts to help Australian first-time buyers have changed several times. It started with the original $7000 First Home Owners Grant, which has been a staple in the market since its inception in 2001, up to a maximum of $24,000 in 2009 from both state and federal coffers for those buying off the plan or building their first home. There is some good news for confused first-time buyers who want to buy a pre-existing property. Tracking the government handouts has now been made a whole lot easier -- there are none left. On Tuesday the state government proudly touted its plans to offer even more money to help buyers of newly built properties, but glossed over the fact that the original $7000 First Home Owner Grant will finish on September 30. Property-market analyst Louis Christopher, of SQM Research, says it is not all bad news because markets will now be able to adjust. "We are of the belief that the less government intervention there is, the better," he says. "The problem is that when the First Home Owner Grant was first brought in, and then there were the boosts, there was instantly, and I do mean instantly, a lifting of house prices equalling the boost and even more," he says. Therefore, what was brought in to improve affordability actually had the opposite effect. He says that at the time of the most government incentives, in 2009, buyers bought at the top of the market. What happened is the First Home Owner Grant boost brought all this demand forward and now there's been this big hole in demand. There simply are not as many buyers around because all the buyers who would have bought in 2010 and 2011 bought in 2009," he says. That caused a slump and we're still in that slump today. In the grand scheme of things, $7000 compared to the median Sydney house price is very small chips. If it seriously is the difference in you being able to get a home, because you don't have a deposit, I would say seriously consider saving more. Buying a home is a massive commitment; $7000 is neither here nor there. Christopher predicts the NSW property market will now fall into a more natural cycle, which could mean prices stagnate in some areas and even fall in others. And in markets where there is a healthy first-home buyer supply under the $500,000 point, there will be an increased interest in the lead-up to the October 1 deadline and then it could die down. "But, potentially, activity could pick up if we get another rate cut, because sooner or later all the rate cuts will bring confidence back into the market," he says. Starr Partners Real Estate CEO Douglas Driscoll says the state-budget changes were aimed at breathing life into the construction industry, but he is not convinced they will boost the wider property market. He says: "When people are enticed to buy existing properties, then the vendors of those properties move on and buy another property elsewhere, and so on." Driscoll agrees handouts do interfere with the natural cycle of the market. Before the stamp-duty exemption went, we had a mind-blowing amount of sales in November and December. I likened it to the Boxing Day sales: there was such a rush and then nothing. It's getting better now but the first three months of the year, sales dried up. He says the removal of the $7000 carrot is a blow to first-home buyers and could have been the equaliser between them and cashed up investors. I think they really do rely on the $7000 because it could get them a new kitchen, or bathroom -- it eases the strain. But is it an incentive to buy? Probably not. Buyers' advocate and real estate agent turned first-home buyer educator, Scott Durrant of Successful Ways says we must remember why these incentives began. The First Home Owner Grant came in to offset the GST costs. And the stamp duty was supposed to help people get into the market," he says. I understand what the government has tried to achieve here but I think it's just tough on those people who want to live near their families and their jobs. They're saying, 'Buy the homes and the infrastructure will come', as if anyone's going to believe that. They're not going to move 50km away just to own their own home. They'll just rent. What's on offer under the $835,000 threshold to get the $7000 before it goes Address: 7 Boala Pl, Engadine Price: More than $599,000 Median house price in Engadine: $623,000 Type: Three bedrooms, one bathroom, one car space Size: 632sq m Realestate.com.au ID: 110785739 Address: 12 Tramway St, Rosebery Price: $699,000 Median house price in Rosebery: $1.1825 million no car space Size: 127sq m Realestate.com.au ID: 110781387 Address: 34 Maple Rd, North St Marys Price: More than $269,950 Median house price in North St Marys: $312,500 Size: 715sq m Realestate.com.au ID: 110790171 Address: 59 Cardinal Ave, Beecroft Price: More than $695,000 Median house price in Beecroft: $830,000 Type:Two bedrooms, Size: 557sq m Realestate.com.au ID: 110792167