I am a New Zealand property investor and our government is considering introducing a first home owners grant to assist first home buyers to buy their first home.
I have been asked what impact this could have on the property market. Some concern has been mooted that this policy may alter the long term income and welfare structure of the population... and consequences might include a glut of houses for sale on the market, and house prices tumbling when all those being helped decide to take any capital gain and sell up. I disagree with these suggested consequences.
In my opinion we would probably see prices rising strongly in the short term on the back of the increased demand from all of the "new" buyers introduced to the market as a result of the grant empowering them to become homeowners.
I understood this is what happened in Australia when your government introduced a 1st Home Buyers Grant but how much impact did it really have? Especially in the larger centres like Sydney, Melbourne etc and how much has it impacted on vacancy rates?
I have been asked what impact this could have on the property market. Some concern has been mooted that this policy may alter the long term income and welfare structure of the population... and consequences might include a glut of houses for sale on the market, and house prices tumbling when all those being helped decide to take any capital gain and sell up. I disagree with these suggested consequences.
In my opinion we would probably see prices rising strongly in the short term on the back of the increased demand from all of the "new" buyers introduced to the market as a result of the grant empowering them to become homeowners.
I understood this is what happened in Australia when your government introduced a 1st Home Buyers Grant but how much impact did it really have? Especially in the larger centres like Sydney, Melbourne etc and how much has it impacted on vacancy rates?