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.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

'Tired' mum dies of undiagnosed diabetes

New mum Nicky Rigby thought her exhaustion was due to the demands of looking after her baby. But the 26-year-old was seriously ill with diabetes, and died due to her condition not being diagnosed.

20 signs of a great relationship

The secret to a perfect relationship is admitting you are wrong after an argument, five kisses a day and sex twice a week, a new survey suggests.

Video: emotional 60-second Robin Williams tribute

Take a minute to remember some of the greatest films of your childhood ... and have a few tissues close at hand.

The realities of escaping domestic violence

?Why doesn?t she just leave?? is the common question people ask when trying to understand domestic violence. For many, leaving the relationship is far from straightforward.

Home truths: the DIY dos and don'ts

A professional renovator gives advice on which jobs you should do yourself, and which you should outsource.

Parenting lessons I?ve yet to learn

Instead of writing about the stuff I do know since becoming a mum, I thought I'd share some of the things I don't. These are the lessons that motherhood hasn't taught me.

Will I be wrecked 'down there' after birth?

Did you worry about how you would look "down there" after giving birth? This mum-to-be found plenty of women willing to share their knowledge.

The new weekend playgroup for working mums

Playgroups are great for kids and parents alike - but the downside is that they often meet during the week, leaving working mums out of the loop.

Letting your toddler be the boss at bedtime

Sick of spending hours trying to get your toddler to sleep? These experts say giving your child more of a say at bedtime might be the answer.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

Ezra's tragic death not in vain, mum says

Little Ezra was a "Harry Houdini" who loved trying to escape the family home. Now, after his tragic death, his parents are doing what they can to help others.

Consulting 'Dr Google' when you're pregnant

We're all guilty of turning to the internet for a quick answer when we need medical advice, but Dr Google should be approached with caution - especially when you're pregnant.

16 ways to tie a scarf

Scarfs are the perfect winter accessory. Whether you're freezing at soccer training or wanting to add a splash of colour to a monochrome top, the right scarf will sort you out in no time. Just ask Nina Proudman.

Video: When adults act like children

Ever wondered what would happen if adults were allowed to act like children? This dad's hilarious video clip will give you an idea of what life would be like.

The simple way to support other parents

We may be raising children of different ages and sexes, with different personalities, but we, as parents, aren't that different - we all have similar struggles, fears, doubts, responsibilities.

Seeing the big picture when it comes to parenting

Sometimes it feels like hundreds of tiny cracks are spreading across the surface of our lives, creeping slowly into the foundations and threatening to make them crumble. How do we hold it all together?

How to spot a lactaboobiephobia sufferer

Lactation consultant Meg Nagle refused to stay silent when Facebook removed two photos of her breastfeeding. Instead, she coined a term to describe those who don't recognise breastfeeding for the natural and non-sexual act that it is.

Win back some precious time and get FREE coupons

Membership to eBay's Bubs? Corner is free and includes a $10 coupon to spend on nappies each month - a win for multitasking mums!

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

Win back some precious time and get FREE coupons

Membership to eBay's Bubs? Corner is free and includes a $10 coupon to spend on nappies each month - a win for multitasking mums!

Do you suffer from Precious Firstborn Syndrome?

Testing ?no more tears? shampoo in your own eyes, warming cucumber sticks so they're not cold straight from the fridge, waking a sleeping baby to check they?re still breathing: these are all symptoms of Precious Firstborn Syndrome.

Ezra's tragic death not in vain, mum says

Little Ezra was a "Harry Houdini" who loved trying to escape the family home. Now, after his tragic death, his parents are doing what they can to help others.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

Video: When adults act like children

Ever wondered what would happen if adults were allowed to act like children? This dad's hilarious video clip will give you an idea of what life would be like.

Mums hit hardest as flu cases skyrocket

The number of confirmed cases of influenza in Australia has doubled the number for the same time last year - and women are 25 per cent more likely to get it.

The mum who had four babies in nine months

Feeling exhausted due to the demands of caring for a baby? Imagine the life of this mum, who gave birth to three boys and one girl in just nine months.

Everything baby at Big W

Lowest prices on everything baby, only at Big W. Sale starts August 4 and ends August 20 2014.

Smiggle is painting the town red!

We have 3 Red Smiggle prize packs to give away! Enter by posting a photo of something red to your Instagram.

Mum gives birth at school

Most kids have their own personal brand of oddity. Others, like these 10 weird habits, crop up again and again.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
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.