kernow43 Posted April 23, 2009 Share Posted April 23, 2009 Kevin Rudd confirms first home buyers grant to end | The Courier-Mail Hurry up those who are going to buy! Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 I would be surprised if the whole scheme ended,I would think that it will just be reverting to the normal $7000.00 grant but I may well be wrong ,the article doesn't really spell out clearly whether it's just the bonus that's going or the whole scheme. I can't imagine the government would end the whole scheme,that would cause the housing market to collapse again just when it needs the stimulus. Link to comment Share on other sites More sharing options...
kernow43 Posted April 23, 2009 Author Share Posted April 23, 2009 I would be surprised if the whole scheme ended,I would think that it will just be reverting to the normal $7000.00 grant but I may well be wrong ,the article doesn't really spell out clearly whether it's just the bonus that's going or the whole scheme.I can't imagine the government would end the whole scheme,that would cause the housing market to collapse again just when it needs the stimulus. The way it ends with" The construction and real estate industries have hailed the boost with some calling on it to be continued. They have voiced fears that if the grant is removed the real estate market will collapse." It seems to me it will be removed completely. Time will tell, it might be that they are baiting to see what reaction there is to it. Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 If the whole scheme is removed then I think that Mr Rudd would have signed away any chance of the Labor party winning a 2nd term in government. Link to comment Share on other sites More sharing options...
Guest alan r Posted April 23, 2009 Share Posted April 23, 2009 if they do end it ,its going to hit the construction industry very hard. as things are not that good in it at the moment. dosent look good does it ? alan r Link to comment Share on other sites More sharing options...
kernow43 Posted April 23, 2009 Author Share Posted April 23, 2009 if they do end it ,its going to hit the construction industry very hard. as things are not that good in it at the moment. dosent look good does it ? alan r But some say it has had little effect because property developers have put their prices up. I think if you can't afford to buy without the grant then you cannot afford to keep the loan going. Maybe soon we will get our own version of the US sub prime proplem! Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 But some say it has had little effect because property developers have put their prices up. I think if you can't afford to buy without the grant then you cannot afford to keep the loan going. Maybe soon we will get our own version of the US sub prime proplem! Not likely in the Australian market I wouldn't think,it hasn't been a real problem even in the boom years as most Australian banks are much more conservative in their lending policies than the US or UK banks. There have been 100% mortgages available in Australia for awhile and we haven't had anywhere near the problems that they caused overseas,I also don't see that people who are claiming the grant are necessarily unable to find a deposit without it,I just see it as an incentive to getting on the property ladder,it's been in place for quite a few years now and I think it's done a lot to help the economy since it was introduced. Link to comment Share on other sites More sharing options...
Happy Lass Posted April 23, 2009 Share Posted April 23, 2009 I would be surprised if the whole scheme ended,I would think that it will just be reverting to the normal $7000.00 grant but I may well be wrong ,the article doesn't really spell out clearly whether it's just the bonus that's going or the whole scheme.I can't imagine the government would end the whole scheme,that would cause the housing market to collapse again just when it needs the stimulus. That's how I read it when I looked through this article just now: PM Kevin Rudd confirms boost to first home buyers grant will end | Property | News.com.au Link to comment Share on other sites More sharing options...
kernow43 Posted April 23, 2009 Author Share Posted April 23, 2009 That's how I read it when I looked through this article just now:PM Kevin Rudd confirms boost to first home buyers grant will end | Property | News.com.au I see what you mean, its says boost will end, in the article I posted it just said it will end, and not be extended past June. Who knows! Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 Interesting that the News.Com article has a quote from somebody saying" Others have warned that the grant is leading to ‘home loan time bomb’ with first-time borrowers taking out larger loans than they can afford. which is something that I have never heard said before in the Australian market and tends to back up Kernow43's point. Link to comment Share on other sites More sharing options...
kernow43 Posted April 23, 2009 Author Share Posted April 23, 2009 Interesting that the News.Com article has a quote from somebody saying" which is something that I have never heard said before in the Australian market and tends to back up Kernow43's point. strange, same newspaper company, I read the Courier Mail and you the News.com site. different journo's maybe. I did read a report somewhere that mentioned because of the grant, house prices had jumped up $50,000 because of others like developers & builders jumping on the wagon. Link to comment Share on other sites More sharing options...
gpo1971 Posted April 23, 2009 Share Posted April 23, 2009 House prices don't seem to have gone up here since the grant was raised to 21k. But, that said, my bro-in-law, who is a builder, expected to be inundated with work in the first 6 months of this year due to take up of the grant and it just hasn't happened. Maybe it hasn't had the intended impact and the Govt think taking it away will make little difference. Dunno, just thinking out loud. Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 I think what it would come down to was that in a healthy economy people could perhaps afford to take out a higher mortgage because of stability in employment etc whereas in a recession with uncertainty about jobs it could have a much greater negative impact. If you've got a secure job then you're are probably less worried about an extra few thousand on a mortgage than if you are worried about losing your job in a recessson. Link to comment Share on other sites More sharing options...
Guest brooksey Posted April 23, 2009 Share Posted April 23, 2009 It will matter to us. My house is in planning at the moment and as an owner builder i have to have my footings in by June 30th or i will lose the money. With having no work at moment that is a lot of money. Link to comment Share on other sites More sharing options...
Petals Posted April 23, 2009 Share Posted April 23, 2009 A lot of people are staying put and adding a room or renovating. If you already live in a good area with transport etc building a new home miles from anywhere on the new estates is not really attractive I believe. I never agreed with the grant in the first place, it was supposed to offset the GST but all it did was make housing less affordable and builders and developers just put up the prices at the time. Prior to the grant house prices were more manageable. Wage rises here in Australia have not kept pace with the increase in housing. Link to comment Share on other sites More sharing options...
Rudi Posted April 23, 2009 Share Posted April 23, 2009 I think the first time home buyers market has been pretty steady around here. I know that whilst top end prices have dropped a bit, the lower end has remained pretty static. I guess the first time grant might be something to do with that. Rudi Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted April 23, 2009 Share Posted April 23, 2009 This has been released today. Prime Minister Kevin Rudd has signalled that the increased first home owner's grant will not be extended beyond June 30. The government has been under pressure to signal whether it will extend the boost to the grant, but has so far refused to outline its plans. "The first home owner's boost, as you know, we have indicated that will conclude within a very fixed and finite time frame," Mr Rudd told reporters in Perth. "It's had strong useful results so far, but I have got to say all good things must come to an end." The grant was raised from $7,000 to $14,000 for existing dwellings and from $14,000 to $21,000 for new homes as part of the government's $10.4 billion stimulus package last year. Mr Rudd said the government was still measuring the full effects of the boost but it was important the community understood deadlines were imposed for a particular purpose. The increased grant, compbined with low interest rates, has seen first home buyers flooding the property market, but it has also fuelled concerns that the demand may be creating a debt bubble that could burst as unemployment rises. "The last thing anyone wants to see is a repeat of the US sub-prime problem," said Craig James, chief economist at CommSec after the release of home sales data. "Perhaps a revamped grant could see the Government matching real savings contributed by first home buyers." The government claimed late last month that more than 12,500 Australians are taking up the increased grant per month. "A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy," Housing Minister Tanya Plibersek said. I must admit, I felt that this would be extended as it seems to be the main reason the market is still moving. Regards Andy Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted April 23, 2009 Share Posted April 23, 2009 Hi Andrew, As there was already a thread on this topic I have merged your thread with this one. Cheers N'OZ Link to comment Share on other sites More sharing options...
kernow43 Posted April 23, 2009 Author Share Posted April 23, 2009 It will matter to us. My house is in planning at the moment and as an owner builder i have to have my footings in by June 30th or i will lose the money. With having no work at moment that is a lot of money. This might help Brooksey Insiders say first homeowners scheme will be extended in the May Budget | Federal Budget 2009 | News.com.au Maybe a change of heart, maybe also they were testing the water Link to comment Share on other sites More sharing options...
Guest brooksey Posted April 23, 2009 Share Posted April 23, 2009 Cheers kernow43, keeping my fingers crossed. Going to phone certifiers and council today and try to push them along. Link to comment Share on other sites More sharing options...
kernow43 Posted April 24, 2009 Author Share Posted April 24, 2009 Cheers kernow43, keeping my fingers crossed. Going to phone certifiers and council today and try to push them along. I hope I am wrong Brooksey but Rudd has poured cold water on it Maybe he is hosing it down and then bring it back in the May 12 budget, so everyone will love him again.who knows with this guy! Insiders say first homeowners scheme will be extended in the May Budget | Property | News.com.au Link to comment Share on other sites More sharing options...
Guest Posted April 24, 2009 Share Posted April 24, 2009 I see many First home owners for their mortgage enquiries and I've got to say that most are looking at existing properties, just because may say that they would not have the additional cash to finish the extras, after the builders have gone (paving, garden carpets and blinds etc). I have also had a few comments that the extra $7k seems to have been put into the price by the developer, before they then take it off. Thus they are looking at existing properties, where they have nothing more to spend. A lot of the lenders are now switching to a 10% deposit required, so $14k would not go very far in this case. Luckily, there are still one or two 95% lenders and one 98% lender left. Further info - please PM me. Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted April 24, 2009 Share Posted April 24, 2009 Very interesting to read your comments on that one Dave. Here in SA things are very much the opposite. The boosted Grants has been a huge incentive to First Time buyers looking to build. Taking in to account that stamp duty costs etc (not sure about perth) for a $400k property are approx $18-19k on established, this wipes out the grant. For a first home buying land for $190k the stamp duty costs are around $7k which then gives them around and extra $18k in their hand. I appreciate it is cheaper here in SA for property land etc so may differ to other states but the Grants here have been a huge incentive especially for people wanting to build. I think it will have a big impact if they are stopped going forward. Regards Andy Link to comment Share on other sites More sharing options...
Guest brooksey Posted April 24, 2009 Share Posted April 24, 2009 Sounds the same as gold coast. Another shock i just had was that for financial reasons i was wanting to take my wifes name off our land. To do so i would have to pay stamp duty again on half the value of the land. Link to comment Share on other sites More sharing options...
Guest Angelcake Posted April 25, 2009 Share Posted April 25, 2009 Oh Bugger - another thing Im missing out on? Any idea's on what effect this will have on the housing market? We decided to emigrate at precisely the wrong time - sold our house when the house market crashed in the uk, watched the interest rates plummet whilst waiting for our money to come through, moved to Aus in the middle of a recession, nearly 5 months here and still no job, and now we've missed out on the first time buyers grant!!! AAAAAAAAAagggggggghhhhhhhhhhh!!!! Can I add as a caveat to those int he UK, that we absolutely love Australia and although things are tough now, we're in it for the long haul. Link to comment Share on other sites More sharing options...
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