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 Acidulous Osprey

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.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

WIN an exclusive performance from Sam Moran!

To celebrate the release of children?s musical series Play Along with Sam, out now on DVD, we?re giving one lucky parent the chance to have Sam perform at their child?s pre-school or day care!

Toddler freed after getting trapped in escalator

A shopping centre escalator needed to be pulled apart to free a toddler's trapped hand.

Why I'm kind of excited about my daughter's nits

Is it weird to say that I am secretly thrilled to find that my daughter Edie has nits?

Baby born at 10:11 on 12-13-14

Well, it's actually 13-12-14 to us over here. But still, Clare Elizabeth Keane's consecutive numerical birth time is pretty special.

On holding tightly and loving fiercely

We can't live in fear. This post is about Christmas and how at this time we should be celebrating life and grateful for what we have: our loved ones who we cherish fiercely.

Babies, relatives and coping with Christmas day

Everyone will love your baby but your baby may not be so happy to be passed around a lot of new people - nor may you want to feed with an audience.

Why I won't be posting pictures of my baby on Facebook

There are pros and cons to this policy.

The myths and truths of gender swaying

Here are a few popular methods hopeful parents-to-be use to try to get a baby of their preferred gender – and what an expert says about whether they really work.

10 easy DIY Christmas decoration ideas

It's officially time to get into the Christmas spirit. Why not branch out when you put up your tree this year and add a personal touch with a few DIY decorations? We've found the perfect easy-to-make ways to put more festive fever into your home.

The dangerous new trend of glucose challenge test refusal

A dangerous trend is seeing more mothers-to-be declining a relatively simple and painless test to check for gestational diabetes.

Office of Fair Trading reveals naughty toys ahead of Christmas

The Office of Fair Trading has pulled seven toys from shelves ahead of Christmas after they fail safety tests.

Video: Baby boy's trouble with twins

These twin girls will no doubt have fun fooling people in years to come, but nobody will be as confused as baby Landon.

Long-term reversible male contraceptive on its way

Men could soon have access to an injectable long-term contraceptive which works in a similar way to a vasectomy but promises to be easily reversed.

'I tried to kill my baby': one mum's story

After bathing and dressing her three-month-old son, Amanda had a rare moment alone with her baby.

Attack of the 'mummy brain'

I feel that almost every day, someone in my life - be they a friend, family member or complete stranger - feels the need to excuse my behaviour as I have other things on my mind.

Mum of baby who fell ill after drinking raw milk speaks out

A Melbourne mother has described how her son turned grey when he became seriously ill after drinking raw milk.

Australian divorce rate lowest since 1976

Modern newlyweds are now well into their 30s and marriage still offers something powerful a new book argues.

The aftermath of a traumatic birth experience

In Australia, 30 per cent of women find their birth experience traumatic, with 6 per cent going on to develop post traumatic stress disorder (PTSD).

Young mum burns 'from inside-out'

A young mum is in intensive care after she took a friend's antibiotic and wound up with an ailment that is burning her body 'from the inside-out'.

The disagreement that can break a relationship

If he doesn't change his mind, all I can hope is that I will. It would be a waste to spend the rest of my marriage mourning a baby that never was.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Co-sleeping or no-sleeping? Mum videos worst nap ever

One mother's futile attempt to sleep in caught on camera in a hilarious - and very cute - video.

Why children misbehave during the festive season

While we all like to imagine the holiday season as being a fun, loving and bonding experience; often our reality is quiet different.

I was fat-shamed by my doctor

The fear of being weighed is the most significant factor in women cancelling medical appointments - and now weight-shaming has happened to me.

End of an era: no more childcare

As we reach the end of 2014, we're closing the book on many things for another year, most notably childcare. Our last child has attended childcare for the very last time.

WIN an exclusive performance from Sam Moran!

To celebrate the release of children?s musical series Play Along with Sam, out now on DVD, we?re giving one lucky parent the chance to have Sam perform at their child?s pre-school or day care!

The 7-year itch is more like the 10-year itch: study

Contrary to popular belief, making it past the seven-year mark doesn't mean your marriage will be smooth sailing from there on.

Should children be forced to sit on Santa's lap?

We teach kids it’s okay to say no if they don’t feel safe, so why do some parents force their children to climb in to Santa's lap?

Stop telling us that parenting gets harder

I’m sure that parenting will get harder. But life isn’t exactly smooth sailing for many of us right now, either.

Baby born weighing almost 14 pounds

Yes, the bouncing baby girl was born by caesarean section. And mum says no more kids.

The dummy debate

I'm the first to admit that when I used to see tiny babies with dummies in their mouths, I thought "Hmm, lazy parenting." And now I apologise.

'I thought I was an only child'

Imagine meeting your double at a school sports event, or regularly being mistaken for someone you haven't met. Separated twins Margaret and Joy tell their story.

Carers admit to force-feeding children

As Sydney grieves the loss of Sydney siege victims Katrina Dawson and Tori Johnson, reports have suggested that both died as heroes.

 

How many weeks til Christmas?

On your To-Do list

Get the "Santa" shopping done without the kids in tow.

 
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.