Jump to content

Will you miss the bonus first home buyers grant?


  • Please log in to reply
4 replies to this topic

#1 smtm

Posted 07 May 2009 - 08:19 PM

There is speculation the Federal Government will pretty much scrap the extra first home buyers grant of $14,000  in the May budget ‚€“ except in Victoria, where the Brumby Government has elected to maintain the extra $14,000 for those buying and or building brand new homes.

Should we be upset over the end of the boost for first home buyers?

After careful consideration, and as one who would miss out on the boost, I say good riddance! [edit] The bonus of $14,000 has served to only distort the market.  Since the introduction of the first home buyers' "boost", housing prices for the lower-end sector, priced between $250,000 - $450,000, have dramatically risen. According to RP Data-Rismark, both house and flat prices in Australia increased in value by 1.6% in the first three months of the year, growing even though the economy had officially entered a recession. The extra boost whilst generous, has motivated more first time home buyers to enter the market than there ordinarily would be.  The relationship between supply and demand dictates, more demand relative to supply, and prices rise. So naturally the prices of established homes in the lower sector have risen, making even these homes unaffordable for many average Aussie families.

Perhaps without the financial boost, distorted property prices may very well come back in line, with affordability.

I wonder if we are actually heading for a housing crisis later this year. With the prediction of rising unemployment levels many households may well find they are close to the edge. Experiencing mortgage stress, because they are in an overvalued home, which ordinarily with out the extra $14,000 they couldn‚€™t afford anyway.

Sonia Williams a mother of two, qualified accountant, author and founder of the site Show Mummy the Money, where you can learn how to, save, make and protect their money. This information is correct at time of writing. It is general advice only and has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

#2 Feral Nicety

Posted 09 May 2009 - 01:46 PM

Good riddens?  Good grief.

No, I won't miss it as we already owned a house.  I'm not sure that I agree that it has distorted the market to the extent you claim as banks have tightened up on lending so much that I think it's less likely that an extra $7000 would mean that people could borrow so much that it would tip them into mortgage poverty.

The last I read about the FHOG was that it was to be scaled back to the prior levels, not scrapped completely.

#3 moomilker

Posted 09 May 2009 - 03:42 PM

ok, so our circumstances are totally different.

we live on a farm, has 2 houses, my in laws own both of them.

so, we are going to buy this house, we have lived here for 2 years and have made lots of improvements.

we are in vic, and beacuse at this moment we dont have enough savings to buy the home (need 2-3 more months to get organised) we are so glad to see that it is staying around.

the good thing for us i suppose is that we have a kind of fixed price of the house, which is great.

I can see how it has made the housing market crazy. I seen koshie on sunrise saying that in some areas, you are better off to wait until after the grant is gone, then buy, as the market is going to work out better for the buyers within a couple months?!

i do also wonder, how many people have rushed out to get themselves a new home? then loose their job, thus putting them in an awful spot?? those statistics would be interesting

#4 ~~mumsie~~

Posted 09 September 2011 - 01:37 PM

We will be buying our first home in a few years' time, and the scale-back (or complete removal) of the grant will not affect us because we haven't factored any amount in from the government with our savings and deposit plans.

I agree that the FHOG has distorted the market.

Will be interesting to see what happens to prices if/when it is removed.

#5 ~Lauren~

Posted 09 September 2011 - 01:41 PM

Why are these posts showing in the recent discussions when they are years old?? Another of her posts was showing before with no replys and dated back in 2009.




4 user(s) are reading this topic

0 members, 4 guests, 0 anonymous users

 
  • The Boxtrolls is due for release September 18.

    Movie review: The Boxtrolls

    Alan Snow?s bestselling novel, Here Be Monsters, offered the creators of Coraline and ParaNorman the perfect tale for their latest stop-motion animation film about a family of box-dwelling trolls who live under the streets of Cheesebridge.

  • Lah-Lah's Adventures airs on the Cbeebies channel on Foxtel and Austar.

    'Lah-Lah's Adventures' a musical treat for young and old

    Sydney-siders with tiny tots have been loyal followers of the Lah-Lah band for many years but the boisterous children?s music group from the inner-west continue to grow their following with their own television series.

  • quotes-320

    Wise words from kids movies

    The movies we watched as kids had a lot more to offer than just entertainment. Here's ten wise quotes from kids movies.

  • yoda

    31 iconic family films from the 1980s

    If you grew up in the 1980s there will be a number of films that are close to your heart. Here are 31 of the most iconic for you to watch with your own kids.

  • cruella

    10 live-action remakes of famous animations

    After the success of "Maleficent" at the box office Disney is opening their vault to re-work the classics into live-action movies, and a number of other film studios are following suit. Here are ten live-action remakes to look forward to.

 
Advertisement
 
 
Advertisement
 
 
 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.