Michael, with respect, you are wrong.
The FHOG is not about affording a higher price it about getting the deposit. Most FHO can afford the repayments but dont have the deposit. I.e. on a common 80% LVR on $300k the deposit is 20% so $60k plus SD and legals so another $10k. So FHO, regardless of income, a PPOR at $300k needs $70k to put down as deposit.
AND on the point Housing is too expensive now. Guess what.....it has always been expensive.
In 89 we had just bought out first home. Cost us $72.5K. Wifes dad loaned us $7k, I cashed super in for $3k and we had savings from our teenage years for therest. How did we save? well my wife and I honeymooned in backpackers and Bnb. We drove a 15 year old car for six years. We never holidayed anywhere we could not drive. I worked at night as well as day. Wife worked as a cleaner in between main jobs.
How many young ones that complain prices are too high are willing to pay that price now?
Peter
PS we still owe the $7k, he refuses to take it back.
Peter that is actually a very valid point. We bought our first home in Brisbane (Logan) for $74k in '91. We scrimped and saved severely for a deposit - and continued to live very cheaply to afford the loan.
I'm sure many people are still willing and able to do this, but I think that society promotes 'get it now' so much that it must be harder for people.
Tim