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Ruffneck

First Homebuyers Grant In Australia May Rise To $20,000

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So since house prices have dropped for the past 9 months here they are now frantically trying to stop the bleeding.All this will do is push prices up by 13,000 , it will not make homes more affordable.

http://www.perthnow.com.au/news/western-australia/buswell-building-to-cabinet-comeback/comments-e6frg13u-1225966217947

Mr Buswell is working on a secret report on the state's housing affordability crisis that is set to recommend the Barnett government radically increase the first-home owners grant from $7000 to $20,000.

The report follows mounting concerns within the government that a dearth of affordable residential property could deter people from moving to Western Australia at a time when labour is urgently needed for a growing number of resources projects.

The Australian understands that Mr Buswell's report will warn of an undersupply of affordable properties and recommends that the Barnett government raise the first-home owners grant to $20,000 for newly constructed homes.

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Guest The Relaxation Suite

So since house prices have dropped for the past 9 months here they are now frantically trying to stop the bleeding.All this will do is push prices up by 13,000 , it will not make homes more affordable.

http://www.perthnow.com.au/news/western-australia/buswell-building-to-cabinet-comeback/comments-e6frg13u-1225966217947

The very worst kind of economics. Land prices in Australia are incredibly over-valued and have little relation to wages. The answer is to let the market sort this out. Why did 30 million people have to die under Stalin's commmand economy for Western politicians to ignore the lesson and repeat the same bad economics?

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So since house prices have dropped for the past 9 months here they are now frantically trying to stop the bleeding.All this will do is push prices up by 13,000 , it will not make homes more affordable.

http://www.perthnow.com.au/news/western-australia/buswell-building-to-cabinet-comeback/comments-e6frg13u-1225966217947

Good grief. My home country is run by 'tards.

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top idea...lets have a grant of £160,000 here in the UK.

Of course, me first please.

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The very worst kind of economics. Land prices in Australia are incredibly over-valued and have little relation to wages. The answer is to let the market sort this out. Why did 30 million people have to die under Stalin's commmand economy for Western politicians to ignore the lesson and repeat the same bad economics?

Yeah but they're not making any more land innit.

How does this grant work? is it free money or repayable?

Sounds like a costly way to keep a bubble inflated. 5 years time that will $50,000 10 years $150,000. What could possibly go wrong?

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Yeah but they're not making any more land innit.

How does this grant work? is it free money or repayable?

Sounds like a costly way to keep a bubble inflated. 5 years time that will $50,000 10 years $150,000. What could possibly go wrong?

they did this in the US...IIRC it was $6000....prices went up...$6000....and when the subsidy went...they went down.....$6000. and still falling.

I wonder how new car sales are holding up?

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...... Why did 30 million people have to die under Stalin's commmand economy for Western politicians to ignore the lesson and repeat the same bad economics?

Because Western politicians, rather like Joe, enjoy running the shop and playing with the lives of the masses who cannot be trusted to run their own affairs. Joe and his mates used violence and forced labour in the salt mines whereas the new boys use focus groups and media manipulation. Either method keep the power and real wealth in the hands of the elite. The Western model gives you a BMW and the Soviet model a Lada, neither give you a chance ;)

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Its actually better than that, the $20k state grant if it happens coupled with the federal grant will get them up to $27k, on a 90% mortgage that means they can buy an extra 270k worth of house. So what happens is it becomes a sellers grant as the selling price rise and even though they could come back a bit if the grant is withdrawn they will never drop 270k.

your short term vision is astounding.

better sell up and cash in before the grants disappear again.

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In April last year I was on holiday in the Daintree Rainforest.

There we about eight of us on a tour minibus. The driver had a chat and asked everyone to say a little about themselves.

One girl on the trip was an investment banker, she got universal disapproval from the rest of the bus (mostly Aussies), in a 'joking but we mean it' kind of way.

The conversation moved on to the $9k that people were given to help them buy a home, and I just had to be the one to point out that:

A - It was taxpayers money.

B - It was just propping up prices and not doing anything to actually help the young afford a home.

The derision from the brainwashed Aussies was laughable, they just couldn't see how the government giving out 'free money' to the young was a bad thing. I stopped talking. My wife gave me one of those "You just had to say something didn't you?" looks.

At our first comfort break the investment banker took me aside and said "You were absolutely spot on with what you said about the $9k, shame the f**king natives are too sh*t thick to realise. I'd have said what you did but they'd have lynched me".

We got on well that day, me and the investment banker lady.

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Its actually better than that, the $20k state grant if it happens coupled with the federal grant will get them up to $27k, on a 90% mortgage that means they can buy an extra 270k worth of house. So what happens is it becomes a sellers grant as the selling price rise and even though they could come back a bit if the grant is withdrawn they will never drop 270k.

Making Perth not only the most isolated city on earth but all so the most expensive. Quite an achievement they will be proud of.

In April last year I was on holiday in the Daintree Rainforest.

There we about eight of us on a tour minibus. The driver had a chat and asked everyone to say a little about themselves.

One girl on the trip was an investment banker, she got universal disapproval from the rest of the bus (mostly Aussies), in a 'joking but we mean it' kind of way.

The conversation moved on to the $9k that people were given to help them buy a home, and I just had to be the one to point out that:

A - It was taxpayers money.

B - It was just propping up prices and not doing anything to actually help the young afford a home.

The derision from the brainwashed Aussies was laughable, they just couldn't see how the government giving out 'free money' to the young was a bad thing. I stopped talking. My wife gave me one of those "You just had to say something didn't you?" looks.

At our first comfort break the investment banker took me aside and said "You were absolutely spot on with what you said about the $9k, shame the f**king natives are too sh*t thick to realise. I'd have said what you did but they'd have lynched me".

We got on well that day, me and the investment banker lady.

I havent met anyone here (Aus) that can see this either, absolutely clueless, people dont seem to recognise that the 'price' is only the price on account of available cash/loans, not some set in concrete dogma that always rises. Wait till the Oz banks cant get such big wads of foreign cash to lend out, then we will see what a house costs.

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Yeah but they're not making any more land innit.

How does this grant work? is it free money or repayable?

Sounds like a costly way to keep a bubble inflated. 5 years time that will $50,000 10 years $150,000. What could possibly go wrong?

It is free "no strings attached" money which goes almost directly from the FTBer's pocket to the house seller. In actual fact it tends to increase the price of houses by MORE than the grant as it allows people to leverage up even further than they would have been able to otherwise. It is completely and utterly retarded unless you want people to pay more for houses.

We also have bank accounts here, in which you can save for a house deposit. They have preferential tax treatment and any new money you put into the account receives a 17% bonus directly from the government.

edited to correct spelin'

Edited by Tiger Woods?

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I remember the days (1980's), when we got tax relief on our mortgage interest repayments.

This was, in effect, tax payers money - so, kind of similar to the Aussie situation.

It just had the effect of pushing up prices - but I didn't see it that way, at the time.

(I think Mrs T the milk snatcher took it away)

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It is free "no strings attached" money which goes almost directly from the FTBere's pockt to the house seller. In actual fact it tends to increase the price of houses by MORE than the grant as it allows people to leverage up even further than they would hjave benn able to otherwise. It is completely and utterly retarded unless you want people to pay more for houses.

We also have bank accounts here, in which you can save for a house deposit. They have preferential tax treatment and any new money you put into the account receives a 17% bonus directly from the government.

Astonishing. One might almost think that the gov't was VI. ;)

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It is free "no strings attached" money which goes almost directly from the FTBere's pockt to the house seller. In actual fact it tends to increase the price of houses by MORE than the grant as it allows people to leverage up even further than they would hjave benn able to otherwise. It is completely and utterly retarded unless you want people to pay more for houses.

We also have bank accounts here, in which you can save for a house deposit. They have preferential tax treatment and any new money you put into the account receives a 17% bonus directly from the government.

Indeed. We benefited from this largesse when selling a flat over there in 2008. 22 people turned up to the inspection, the agent asked "Who wants it?", a sh!t-fight ensued, sold the place to a lovely (if somewhat naive) young man who worked for one of the Big 4 banks. Last I looked, similar gaffs were listing at 25% over what we received (having made a healthy mark-up ourselves). Mental.

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Guest The Relaxation Suite

Indeed. We benefited from this largesse when selling a flat over there in 2008. 22 people turned up to the inspection, the agent asked "Who wants it?", a sh!t-fight ensued, sold the place to a lovely (if somewhat naive) young man who worked for one of the Big 4 banks. Last I looked, similar gaffs were listing at 25% over what we received (having made a healthy mark-up ourselves). Mental.

Land in Australia is grossly over-valued for lots of reasons, including planning legislation, loose credit and land-banking, especially in Melbourne where thousands of empty homes belong to Chinese speculators. The Government tried to act against this outrage but there are loopholes that make it easy.

Having said that, you still get more for your money in most Australian cities than you do in Britain, but it is gradually equalising in my opinion. A major bloodbath is coming to the Australian property market for sure. They will keep rates on hold on Tuesday in my view because they raised them last time, but the rates will gradually go up over the next 18 months and this will squeeze the pips of all those who borrowed 84765 times their wages to buy a place.

Tick tock, tick tock, BOOM.

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... It is completely and utterly retarded unless you want people to pay more for houses.

.....

Banks, builders, estate agents, mortgage brokers, DIY stores and many others want people to pay more for their houses. The retards are the ones who's names are on the mortgage agreement :D

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We also have exponential growth in self managed super funds (pension funds) with civilians now directly investing in property since they legislated that a SMSF could borrow money for property. Any income from the property is only taxed at 15% regardless of your marginal rate if you are otherwise earning and is zero after 60. If you are not working when you sell it then the CGT is zero, yes zilch. And lastly the loans are non recourse. Poetry in motion if you ask me.

I didn't realise the loans were non-recourse. What is the premium? You have a link to someone who offers these loans?

It's almost enough to make me go out and buy a dozen houses. Even as a dyed in the wool bear I can see free money when it is on offer.

Edited by Tiger Woods?

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I think it may be you that lacks vision.

If recent history can be used as a guide then your strategy would be a losing one.

2001 increase grant, prices increased and didn’t decrease when it was scaled back

2008 increase grant, prices increased and didn’t decrease when it was scaled back

2011 potential increase to grant, what do you think will happen ?

....just as a matter of interest "2001 increase grant, prices increased and didn’t decrease when it was scaled back"...OK ..this was during the mega boom near the beginning in Aus....but ..."2008 increase grant, prices increased and didn’t decrease when it was scaled back".... prices have pulled back a bit including in Western Australia.....No?..... :rolleyes:

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A friend of ours has just returned from OZ .. He was going to expand his very sucessfull UK buisness out there .. He was stunned he said it was like Ireland in 2005 .. He was going to stay for a year to setup the new branch of the buisness .. He walked away calling the whole country a clusterf%ck .. They have a huge property crash coming and nobody will even entertain the idea that there might be anything wrong ..

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we're all sneering but given the incredible number of people who now work in the public sector our own key worker/shared ownership schemes are substantively the same thing, i.e. a policy aimed squarely at pushing prices up badged as 'improving affordability'... you could even argue that the aussie one is more sensible since it's only available on new houses [might incentivise housebuilding maybe?], although i suppose an advantage of the uk one is that the state's equidee value should increase over time...

with the australian scheme if i had three FTB grown-up children could they all get a grant to buy a pwoperdee under this scheme [deposit 100% funded by me] & then decide to give me their houses as a christmas present?

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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