First home owners grant of $14,000. will it continue after june 30?

dave289 · 13-03-2009, 09:02 AM

The first home owners grant of $14,000 is supposed to end on june 30 and revert back to $7,000. Do you think they will extend it and keep it at $14,000 after june 30 with the state of the economy being so bad. Are they just saying that it will end to get more people moving on this now because if they were to announce that it was being extended prior to june 30 then people would sit back and wait which would slow the economy even further?

Fev · 13-03-2009, 09:05 AM

i dont think so - theres a housing shortage as it is and the government is running out of cash too..

My girlfriends been trying to find an apartment on sydney's north shore/hills area because of the bonus and its almost impossible now - in the last 6 mths her real estate agent has sold 30 apartments in the one building, almost one to her but the strata report came back with too many building defects and theres no money in the sinking fund so its a bit sketchy (only a 3 year old building, in hornsby behind barker college) and its never been filled completely.
she was trying to get her purchase in before july but there's just nothing around..

by the way - for Brand new houses the bonus is $21,000

Lynch'd · 13-03-2009, 10:54 AM

I think it's likely they will continue it given that its about the only thing that's propping up the housing market at the moment. They have to set a cut of date to force people to make the purchase now as if they say its indeffinate or just keep extending it well in advance people will wait until better times, thus defeating the purpose.

MITCHAY · 13-03-2009, 10:56 AM

I really hope they extend it. I was set to buy up this year until I lost my job so those plans have been delayed. I'd have a decent amount with the grant so it would help heaps.

**ebxr8240** · 13-03-2009, 11:01 AM

I think the NEW part will be dropped .. Besides it pushes the price of new houses up by about the same amount..
They get it back in GST anyway..

Racecraft · 13-03-2009, 11:22 AM

i'd say it will get knocked on the head...

1. They don't want to more people in debt.

2. There are alot of $950ísh stimulus bonus in $7000 .. Reach more voters with crumbs than a select few with a big lump

3. The housing market is over inflated. The 'first home buyers' end of the market especially. The 300k-400k market is ridiculous with people asking huge money for a glorified cardboard box :P

4. THe shortage of suitable homes as Fev said.

Tipping in a few thousand seems like a pot of gold, but is nothing compared to the associated costs and stamp duty levies. If that extra 7k is the make or break of the deal then chances are you are in for a very rough ride in your first few years of ownership.

gozza · 13-03-2009, 11:36 AM

They should keep it going because I'm looking at buying my first house in the next 6 months haha. Can't do it before July though. I'd be extremely annoyed. The stimulus is a joke anyway

bafel · 13-03-2009, 07:21 PM

hopefully it goes, force people (like me) to save a deposit for a first house. Also demand would be likely to fall and prices should come down as a result.

Yellow_Festiva · 13-03-2009, 08:20 PM

I hope it stays, I'm planning to sell a few places in the first home buyers bracket next financial year.

While the grant is available, the market will remain steady. Don't really mind if values stay constant or go up a little, but wouldn't want them to drop as I fear they will if the grant is removed.

naddis01 · 13-03-2009, 08:45 PM

We are thinking of selling our place here if anyone is interested, ha ha. Suit first home buyer, new kitchen etc, excellent return on investment if you were to rent it out.

Rob's 76 Effy · 13-03-2009, 09:11 PM

I'm looking at buying now, but i wont get any Gov help having already owned a home, never got any Gov help when we first bought only a 3g bonus from AV Jennings, well i cant really complain got my Bank loan (this new one) on a single income, just means i'll be in debt for the rest of my natural life, Ohh i'm going to fix the interest rate for the next 6yrs, rates wont stay this low for ever

snappy · 13-03-2009, 09:17 PM

For me the grant is 29k - 21k for building a new home 8k from state gov for building rural . I trying to take advatage of it but having issues getting a loan because im self employed . I doubt it will be aroud for long

HUNTER8 · 14-03-2009, 12:47 AM

I thought it wouldnt be around after 30 June but things are now changeing in the Banking industry. ANZ only lends 90% of the house vale, ING is following suite. CBA want a savings record before they will lend, most of the 100% lends are gone.
If they drop the extra grant there will be considerably less first home buyers buying houses which is not good. No buyers and rising unemployment could lead to a crash in the housing market and prices so I think it will continue.............my thoughts only mind you.

Scott · 14-03-2009, 01:01 AM

Quote:

Originally Posted by Racecraft

i'd say it will get knocked on the head...

1. They don't want to more people in debt.

I think the opposite - people taking on debt is the lesser of two evils at the moment, spending is king... even if it's not their money.

Get loans = build houses = create/maintain jobs.

I think the grant will stay, it's a cheap way to generate mega amounts of value.

Rob's 76 Effy · 14-03-2009, 06:33 AM

Quote:

Originally Posted by HUNTER8

I thought it wouldnt be around after 30 June but things are now changeing in the Banking industry. ANZ only lends 90% of the house vale, ING is following suite. CBA want a savings record before they will lend, most of the 100% lends are gone.
If they drop the extra grant there will be considerably less first home buyers buying houses which is not good. No buyers and rising unemployment could lead to a crash in the housing market and prices so I think it will continue.............my thoughts only mind you.

I got my loan (pre approval) through Bank West 95% of house value, i don't even bank with them always been with CBA, what helped i think was having a housing loan before and showing repayments were made and up to date (14yrs worth), not sure if i'm doing the right thing, at 47 paying a loan over the next 25-30yrs on a single income might be a bit of a worry, this is a big step for me just coming out of a seperation with a small pay out, so renting is still an option and spend the the money i'll be getting on a new car as this will be my only chance of owning a new one or bite the bullet and buy a house

Scott · 14-03-2009, 10:25 AM

Quote:

Originally Posted by Explorer_Me

I got my loan (pre approval) through Bank West 95% of house value, i don't even bank with them always been with CBA, what helped i think was having a housing loan before and showing repayments were made and up to date (14yrs worth), not sure if i'm doing the right thing, at 47 paying a loan over the next 25-30yrs on a single income might be a bit of a worry, this is a big step for me just coming out of a seperation with a small pay out, so renting is still an option and spend the the money i'll be getting on a new car as this will be my only chance of owning a new one or bite the bullet and buy a house

Everythings relative, but there's never a bad time to buy realestate if you can afford it. The next 6 months seems to be a great time where interest rates will be low enough to make a smart buy cheaper than renting and you'll have the ability to fix it for a reasonable time frame. Being single means you will have the opportunity to rent out a room in the future if things get tight and being 47 is no barrier at all.

My parents, after bankruptcy in the last recession, bought their current home at 57 years of age. Today they have it basically paid off and have some chance at a comfortable retirement (though battered with the last years super losses).

Good luck with it.

Dave_au · 14-03-2009, 08:34 PM

I hope they knock it on the head, the first home buyer's market has gone crazy, and vendors are able to sell their units/houses/etc for $10k more than the value of some of these places pre additional grant. It's getting ridiculous! And besides, there will be a lot more worse news to come.

351buzz · 14-03-2009, 09:05 PM

I signed my contract 3 days before the extra 7G was announced. Because I'm building that would've come in so handy, budget seems to be blowing out daily

, Oh well should be moving in next month, yay.

red_hotxr6 · 16-03-2009, 03:24 PM

I for one hope it continues, it would be a great help..

Pinch · 17-03-2009, 02:07 PM

I am looking at upgrading to a house (instead of my villa). So not a FHB, but still looking at under $500K places as I don't want a big mortgage. In my area (the Shire) this market has gone nuts. Places that were being listed at around $450K and hanging around for months 6 months ago are now being snapped up within weeks for $500K.

There is a whole lot of panic buying going on at the moment as people are fearful they will not get the bonus cash after 30 June... so are spending up to $50k more than they would have 3-6 months ago. Over $550K market is still stalled though.

Real estate is only worth what people will pay, fair enough. But here places have gone up much more that the original $7K bonus - meaning you have to borrow more. This is also because that another $7K deposit gives you, in general terms, another $70K of borrowing power if you otherwise have the repayment capacity - hence the prices rising by close to that.

It might actually be better for FHB'ers in our area if the additional grant was discontinued, to short circuit the panic buying that seems to be going on.

FHB's, dont fret the demise of the additional grant if that's what happens - supply and demand will be your friend! Competition will drop and so will prices.

Scott · 17-03-2009, 02:38 PM

Quote:

Originally Posted by Pinch

It might actually be better for FHB'ers in our area if the additional grant was discontinued, to short circuit the panic buying that seems to be going on.

Ssssshhhhh.

naddis01 · 17-03-2009, 07:10 PM

I wish I could have afforded a $500k property as my first home. I dont think any of the houses here are worth that much. Even the new ones. Maybe around half that. I guess thats one advantage of not living in Sydney.