FHOG Doubled and Tripled

[pokka]

"First home buyers will be eligible for the First Home Owners Boost from today (14 October, 2008).

ALL CONTRACTS entered into by 30 June, 2009 will be eligible for this new additional assistance."

http://www.pm.gov.au/media/Release/2008/media_release_0546.cfm

 

[LynnH]

To all those who are crying "unfair", may I ask one (OK, two) teeny, weeny little question(s)?

If Rudd had CANCELLED the FHOG today instead of increasing it, would you be demanding that the cancellation be backdated???

Or would you gratefully accept the FHOG at its current level, knowing that those who sign a contract today will miss out?

Replies, anyone??

Cheers
LynnH

 

[pokka]

TRUE, but it was NOT cancelled. And being the naturally greedy people that we are, of course we would want more.

 

[Alex P Keaton]

To all those who are crying "unfair", may I ask one (OK, two) teeny, weeny little question(s)?


Replies, anyone??

Cheers
LynnH

if this was happening to you "you would be crying unfair" too!!

 

[ok180]

To all those who are crying "unfair", may I ask one (OK, two) teeny, weeny little question(s)?

If Rudd had CANCELLED the FHOG today instead of increasing it, would you be demanding that the cancellation be backdated???

Or would you gratefully accept the FHOG at its current level, knowing that those who sign a contract today will miss out?

Replies, anyone??

Cheers
LynnH

ok, i'll bite.

1. No

2. yes

I'll admit i don't really need it anyway, i made my decision to build before all this 'world turmoil" started. I actually thought they might cancel the FHOG when they were talking of bringing in the FHO saving accounts.

 

[Alex P Keaton]

better get back to work, lunch is over

 

[Kennethkohsg]

Now Rudd’s pumping liquidity into the residential housing market. If this keeps up I might even vote for him next time.

***********************
Dear ffc1883_1996,

1. Like you, the investing part of "Me", was happy with KR's recent move to urgently stimulate the ASX, the Australia Economy and the various housing markets in Australia over the last 2 days.

2. However, the other "Cautious" part of "Me", keep cautioning me and reminding me to question the following:

a. "Why is KR doing all these now and not before the recent global financial crisis hit us in Australia?...

b. Perhaps, as the Australian PM, KR has already knew some real bad news coming along the way soon, which he has not openly shared with the Australian public, at this point in time?

c. Is the A$Trillion strong Australian Economy really about to fall apart soon, with all these asset and debt de-leveraging rapidly occuring all over the Western world as Phase 2 of the Global Credit Crunch strike recently and since Wayne Swan last uttered the locally unpopular word, "Soft Depression", directly from Washington, on Monday night?"

d. Why the sudden need to urgently implement this stimulus economic package in Australia over the last 2 days? Is the Australian Economy presently slowing down rapidly to almost a complete standstill now?

e. Are these real economic stimulus package for Australia or are they real desperate attempt to re-jumpstart the rapidly slowing down Australian Economy?


3. For your further comments and discussion, please.

4. Thank you.

regards,
Kenneth KOH

 

[Lamingtons]

Some would argue that by tripling the FHOG on new builds it would create more supply?!!?

What does everyone think?

 

[ffc1883_1996]

To all those who are crying "unfair"...

In 2006, I had a dual fuel conversion fitted to my car. One month later, little Johnny released a new policy - $1000 rebate for LPG conversions.

So, for me…
1) I missed out on the $1000
2) The price of LPG instantly rose significantly due to the increased demand
3) The company who installed the system in my car became too busy with new business to worry about after-sales service

I was the biggest looser!

There’s nothing fair about these petty little govournment interventions. HOWEVER, who cares? Voters love it!

Don’t expect Rudd to actually DO anything. Why would he? It has been proven by leaders such as Steve Bracks that the ideal way to keep office is to do nothing for a decade and then hand over the reins before people get sick of you. If Rudd does nothing for another nine years then things are looking good for Gillard.

 

[Gee Cee]

More Pokies Revenue

I reckon the clubs & pubs & Tab will be pleased. that's where a lot of the Childs tax benefit A and Pensioners Bonus will go.

Any way I can apply for the first home owners grant.

Gee Cee

Greg

 

[moyjos]

I am a member on a "frugal living" forum and it is going off with
"All the wonderful things we can buy the kids for Xmas" posts.

Most are saying 10-20% to the mortgage and the rest on the kids.
"After all the bonus is meant for them" (lots of agreement to that statement)

Only a couple of people over there saying Hooray we can afford to buy.

Sue

 

[vbplease]

Replies, anyone??

Cheers
LynnH

Lynn,

Your first question doesn't make sense.. in the case that the FHOG is cancelled, why on earth would we want it backdated to give the grant back??
It never would be cancelled because its purpose is to stimulate the receding economy.. receding, through no fault of our own. We pay our taxes and have no input into the budgets that Rudd comes up with... we are only trying to use the system the best we can. When the system changes so dramatically, why are you surprised we are p*** off?

 

[essence]

***********************
Dear ffc1883_1996,

1. Like you, the investing part of "Me", was happy with KR's recent move to urgently stimulate the ASX, the Australia Economy and the various housing markets in Australia over the last 2 days.

2. However, the other "Cautious" part of "Me", keep cautioning me and reminding me to question the following:

a. "Why is KR doing all these now and not before the recent global financial crisis hit us in Australia?...

b. Perhaps, as the Australian PM, KR has already knew some real bad news coming along the way soon, which he has not openly shared with the Australian public, at this point in time?

c. Is the A$Trillion strong Australian Economy really about to fall apart soon, with all these asset and debt de-leveraging rapidly occuring all over the Western world as Phase 2 of the Global Credit Crunch strike recently and since Wayne Swan last uttered the locally unpopular word, "Soft Depression", directly from Washington, on Monday night?"

d. Why the sudden need to urgently implement this stimulus economic package in Australia over the last 2 days? Is the Australian Economy presently slowing down rapidly to almost a complete standstill now?

e. Are these real economic stimulus package for Australia or are they real desperate attempt to re-jumpstart the rapidly slowing down Australian Economy?


3. For your further comments and discussion, please.

4. Thank you.

regards,
Kenneth KOH

Dear Kenneth,

2.a Financial crisis has not hit Australia. We have seen nothing yet. Spending of half of budget surplus is in fact purely preventive measure - and a timely one.

2.b There is very bad news coming our way. With falling stocks, commodities (esp oil), stagnating property and possible break in drought we are heading for deflation. This is much nastier than inflation and in coming months we will seee Government spending like mad, RBA printing money like mad and lowering interest rates like mad. It is hard to see now how interest rates are going to be much more than between 0 and 1%.
2.c Economy is not going to fall apart. There are more than 2 billion people in the world who need our commodities. Sharemarket is going to be punished for 18 years of irrational exuberance. Sharemarket turnoover is going to stabilise at 80-90% of GDP, which is 1000-1500 points level. Could be a bit higher, because there is so much money in managed super.
2.d I see nothing sudden. RBA has made titanic mistake Feb/March this year by rising rates when they should have cut them. They should have not touched rates at the end of 2007. Last 1 point drop only partly undoes RBA's blunder, giving no ammo at all to combat global meltdown. Please keep in mind, that changes made today will only have an effect 6 months down the track. We need more agressive rate cuts to avoid Japanese scenario.

With the resource bubble bursting Government has no choice but to find alternative that will underpin the economy in hard times, namely construction (residential and infrastructure).

Can't help to say that I am surprised how well this Government handles the crisis. Challenges are correctly identified and response is well designed. While the drama unfolds we will see if they still will have the guts to come up with adequate measures.

 

[allblack]

Some would argue that by tripling the FHOG on new builds it would create more supply?!!?

What does everyone think?

Couldn't agree more. This is really going to distort the market and I am considering selling in the next 9 months while the first home buyer feeding frenzy is on, because I am scared what could follow.

 

[Spectre]

I reckon the clubs & pubs & Tab will be pleased. that's where a lot of the Childs tax benefit A and Pensioners Bonus will go.
.

Gee Cee

Greg

Good stuff - my CUS shares will go up

Also .... Heard earlier on the radio
Taxpayers fund the banks who charge higher rates back to them and now the banks are all govt rated - should more rate reductions be passed without since funding is now guaranteed.

thoughts

 

[Spectre]

To all those who are crying "unfair", may I ask one (OK, two) teeny, weeny little question(s)?

If Rudd had CANCELLED the FHOG today instead of increasing it, would you be demanding that the cancellation be backdated???

Or would you gratefully accept the FHOG at its current level, knowing that those who sign a contract today will miss out?

Replies, anyone??

Cheers
LynnH

Lynn

I think I see where you're heading with this.

Many of the FHBs tend to look at "wheres my $7k" not realising that they're beating the rush and just made it.

The fortunate part is more that they cant access it straight away to blow it on a plasma

 

[wylie]

I am a member on a "frugal living" forum and it is going off with
"All the wonderful things we can buy the kids for Xmas" posts.

Most are saying 10-20% to the mortgage and the rest on the kids.
"After all the bonus is meant for them" (lots of agreement to that statement)

Only a couple of people over there saying Hooray we can afford to buy.

Sue

Curious to know what this forum us, if you don't mind telling us.

 

[Zhouse01]

Does anyone know what constitutes a new home? Can it be buying a unit that has just been built or does it have to be a house?

 

[Bayside]

I think it's natural to be a bit annoyed missing out on $7k by a few weeks.
So whats the deal, I know its from today but is the new FHBG from signing contract or settlement?
I signed a contract 6 weeks ago but settlement isn't for another 3 weeks.
It really should be from settlement because thats when they hand over the cashola

 

[vbplease]

Many of the FHBs tend to look at "wheres my $7k" not realising that they're beating the rush and just made it.

Beating the rush?? the condtions are only getting better for buying.

The fortunate part is more that they cant access it straight away to blow it on a plasma

Thats a contridiction.. why would someone be interested in buying property and blowing money on plasmas at the same time?

Don't put all gen y's in the same basket.

I appreciated my 7k grant, but pretty p*** the rules have suddenly changed.. a bit of consistency with the government grants would be nice.