"$14,000 Grant"



From: Peter Davidson

Now with the government offering a $14,000 grant to new properties only, what do people now see happening? Will we still see strong demand for rental properties or a slight\mass exodus out of rental and lower rental yields due to the grant? I suppose we won't really know until about a years time when a lot of people move out of the rental market into their own homes. Then again, if you're in it for the long term, it probably won't have much impact(I hope). Thoughts?
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Reply: 1
From: Neophyte .

Has the government announced a time frame for the extended grant? I heard it was a temporary measure to stimulate the economy.

I wouldn't imagine it will have a long term effect, there's only a limited amount of building that can occur in a given time frame - take the pre-GST building boom for instance.

What was the effect during the pre_GST boom when "everyone" was building? I'm new to this, so anyone with rentals during that time may be able to shed some light.
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Reply: 1.1
From: Gerard C

The $14000 applies to new homes or building contracts purchased/entered into by 31st December 2001.
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Reply: 1.1.1
From: Jing Lm

I heard this $14000 incentives to new building buyer new this morning, I was very
upset. I think it is very unfair to non first
home buyer. I do not think it will stimulate
the market too much. It will only damage the
rental market further in short term. The rental market in Sydney is already very weak at the moment. Personally, we have a IP in North of Sydney which has not be rented for
6 weeks plus 4weeks tenant notice. We don't know who we should blame to, agent or ourselves or government's stupid policy.
I know there are many rich immigrates
(investment immigrates)taking these new incentives advantage. Because they are qualifying as a first home buyer category. It is very unfair to Hardworking taxpayer Australian.

Has anyone had a experience not be rented out for 6 weeks? What should we do? Change agent Any advise will be appreciated.
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From: Rolf Latham

Hi Grace

The rental market to my understanding is reasonablre. Lower rates of return are likely as a result of the great capital growth over the last two or so years.

Many things cause poor occupancy.

Poor agency and too high a price for the current market are probably the most common amongst my clients.


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From: Diane -

Hi Grace,
Is your property in good condition? Have you checked that it has been left clean and tidy ready for re-letting? Check with other agents in the area and find out what the enquiry rate is against what your current agent is saying. Check your price, it is better to drop the rent a little to get a tenant in than to let the property sit vacant for months with no income. You find dropping the rent and letting rental property sooner rather than later often gives you the same end of year return as would hanging out for a bigger rent. This has been my experience anyway. Hope this helps.

All the best Diane
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From: Rasputin .

From my humble enquiries to the people most affected by this extra grant, not too many are going to take it up.. A lot of them dont like th elong term commitment for owning.. So rentals will probably take a small slump but not too big hopefully
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From: Tony Cannon

The fact is that buying property is mainly an attitude of mind. I know many people, on relatively high incomes in secure jobs, who prefer to rent/holiday/etc. Conversely there are people, some of whom subscribe to this forum, who would invest in property in preference to spending money on holidays/cars/expensive jewelry/children? And that is where Howard got it wrong. He could have encouraged "investors" to buy property through reducing CGT. That would encourage investors back to property without it costing the Govt anything since the increased level of investment (today) would stimulate the economy and offset the marginal loss in CGT (in the future).
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