FHOG not extended

[lostis]

KRUDD has confirmed no extension to the First Home Owners grant.

http://www.news.com.au/business/money/story/0,28323,25373584-5013951,00.html

Finally we're going to be back to a buyers market

 

[The Fence]

KRUDD has confirmed no extension to the First Home Owners grant.

http://www.news.com.au/business/money/story/0,28323,25373584-5013951,00.html

Finally we're going to be back to a buyers market

No extension to the "Boost' part of the FHOG...the original grants stay in place....$7000 for existing homes and $14000 for new......
Still way better than what I got as a FHB......

 

[Property Meister]

where does it say the boost part only is being removed????? unless. my eyes are playing tricks on ,me

 

[buzzlightyear]

What is not clear if that the whole grant will be removed or the additional amounts offered last year will be removed.

 

[want2bewealthy]

I think you'll find that it is in fact 'now' a buyers market.

If you're a first time buyer, the increased grant isn't going to help your servicability much at all as you now need 3% genuine savings.

My Broker says the rush is now over, and first time buyers have 'missed the boat' so unless an individual has either cash, or capital isn't going anywhere in a hurry.

I believe that anyone who was going to buy would have done so by now anyway.

 

[lostis]

I think you'll find that it is in fact 'now' a buyers market.

If you're a first time buyer, the increased grant isn't going to help your servicability much at all as you now need 3% genuine savings.

My Broker says the rush is now over, and first time buyers have 'missed the boat' so unless an individual has either cash, or capital isn't going anywhere in a hurry.

I believe that anyone who was going to buy would have done so by now anyway.

Im looking more at the fact that in the sub $400K market there is more space to negotiate and in some suburbs, even find reasonable properties.

 

[brisbanebased]

Looking at laternative sources, this one is a bit clearer about indicating that it's only the "boost" that is going.

The Prime Minister says the government's boost to the first home-buyers grant will not be extended past its June 30 deadline.

http://www.skynews.com.au/news/article.aspx?id=324728

But it's still not 100% and I'd wait for further clarification. I'm sure there will be many potentially FHO who are going to cry out in despair at the loss of the extra $7k and there will be more PR & press on this.

 

[The Fence]

The "boost" was to run from Octber 08 to June 09...that's it in a nutshell...the boost only.... Stimuli.....
Some have been trying to get Rudd to extend the "boost" but he's digging in and has the original FHOG to fall back on.....

 

[sash]

Fantastic....this with the tightening on credit should remove a lot of competition from the market!!

Wooohoooo!!!!....

 

[GIDDO]

I think you'll find that it is in fact 'now' a buyers market.

If you're a first time buyer, the increased grant isn't going to help your servicability much at all as you now need 3% genuine savings.

My Broker says the rush is now over, and first time buyers have 'missed the boat' so unless an individual has either cash, or capital isn't going anywhere in a hurry.

I believe that anyone who was going to buy would have done so by now anyway.

I reckon you are right want2 but I am really looking forward to going to a few open houses and seeing NO names in the visitors book.
IMO the RE agents at the moment are a bit over excited with all the churn of FHBs looking around.
Wouldn't it be a nice change to have 6 months of NIL activity. Then you could have a serious talk to REAs about prices, instead of talking about the activity levels.
There WILL be bargains!

 

[ffc1883_1996]

Though I don’t think the FHO Boost was particularly good public policy, I wasn’t complaining about the huge pile of tax revenue being thrown into the resi property market - certainly didn’t do any damage to my hip picket.

The last six months has seen a lot of renters become mortgagors – easing upward pressure on rents. In the second half of 2009, could we see a return to 10%+ annual rent growth?

 

[tigerGT]

This is good news. No more kiddies with their mums and dads buying property without research and paying too much

 

[TheAnalyst]

I do not see much difference with/without the grants -- maybe the new migrants. For 95% of FHBs, they probably have used it anyway. Those who most benefts are the real estate agents who are selling the FH market. The second tier market did not do anything under the FHG. The government did not benefit either. We really need is the substantial reduction in stampy duty, land tax and shire and council rates.

 

[tigerGT]

Yes and we need the return of 100% lend with no LMI!!

 

[Nathan]

Do some interesting research aswell guys.

In 2001, FHOG was reduced from 14k to 7k.

What happend to the market then?

 

[The_Bludger]

$7k, whoopi doo. Doesn't make a difference when you're buying in the $300-400K price bracket IMO. The FHB's will still be out there in force.

 

[craigb]

$7k, whoopi doo. Doesn't make a difference when you're buying in the $300-400K price bracket IMO. The FHB's will still be out there in force.

I agree but why did it work so well!
Because it was a great leg up for the LVR and getting over the approval line.
If the prices shift south they will go far beyond the woopdedoo of 7k.

 

[twobobsworth]

or is it?

http://www.news.com.au/story/0,27574,25378732-5012587,00.html

 

[The Fence]

Reckon they will means test it and make it harder to get......?

 

[HandyAndy888]

Got to love finance stimulus news. FHOG has to be used NOW, so that builders don't go bankrupt in the short term. KRUDD doesn't want people to wait, he wants people to act now....