Jump to content
Will you miss the bonus first home buyers grant?
4 replies to this topic
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!  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.
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.
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
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.
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
At times, I feel pretty worthless. In those moments, all I want to do is curl up into a ball and hide in the dark. I can try to quiet my mind, but it won?t shut up.
An Italian woman has been told the twins she is three months pregnant with are not hers.
My husband and I mutually decided that we didn?t want to know our baby's sex before the birth, but his mother couldn't handle that.
In my opinion, the first three months after the birth are the most intense. Here's what got me through that time after welcoming my baby.
Weaning your child off the dummy can be a traumatic experience for both of you. Here are some tips to help you through.
Two women share their stories of longing for a baby so much that they each decided not to wait for a partner before becoming a mum.
An Australian study has uncovered information which could lead to a better understanding of why babies die from Sudden Infant Death Syndrome.
Photographer, self-professed "crazy dog lady" and mum Grace Chon takes photos of rescue dog Zoey and her 10-month-old son Jasper together. The results are just too cute. See more on Instagram @thegracechon.
We tried the Mountain Buggy nano and give it an enthusiastic thumbs up. As the ultimate travel stroller, it's practical, has great features, and looks fab, too.
Daly Thomas and her two young sons were walking home from church on Tuesday afternoon. Her youngest son never made it.
Don?t adjust your screen: this bright beauty is coming to you in full colour.
If this is your little one?s first Easter you might want to mark the occasion with something a little extra special. Here are 10 Easter gift ideas, which won't harm little teeth.
Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.
Top 5 Articles
Check out the good looking new release of the Vibe 3 and the Verve 4-wheeler inline strollers. To celebrate their release, we have a Vibe with double kit to give away.
From birth to one year and beyond, read about baby sleep, soothing techniques, routines, and sleep school experiences.
Although I?m jumping out of my skin to take my child-free holiday, I?m dreading the goodbye. But I?m determined to make the most of it without tarnishing it with guilt or sadness about leaving the kids.
Parents of children who suffer from eczema will know only too well the scratching that occurs around the clock. A new clothing range aims to help make everyone more comfortable.
What is it that shapes our opinions on what?s an 'appropriate' age for our children to get their ears pierced? Parents share their views on how young is too young when it comes to piercing.
Looking after grandchildren can help grandmothers ward off brain disease - but it's also possible to get too much of a good thing, researchers say.
After two water births at home, I was determined to give birth to my son the same way. I just hoped this birth would be quicker than my last two.
If you?re confused by food labels, you?re not alone. Next time you?re shopping for food, look out for these seven common labelling tricks.
Free Printable Activities
Free printable acitivity pages like colouring in, cutting, word finders, mazes, maths activities and puzzles.