Minx - I have to agree.
KR & Co. are dreaming if they believe that their doubling of the first home owners grant is going to help first home buyers.
If anything, the grant increase will just be built into the selling price of homes that are in the FHB bracket.
If KR & Co had any sense, they would let the market do its work - it is not as if property prices are grossly undervalued. The stimulus that is required is on the supply side.
I have made a tongue in cheek comment on this on my continuing thread in "property market economics".
Why not invest in long term infrastructure which will create employment (through building and use) and stimulate the economy in a way that will be of lasting benefit to all Australians - why do our govts continue to prop up short-term consumer gluttony?
Food prices are high because there are fears about world food shortages. What is the smartest thing we can do? Well we have an abundance of sunlight and good soil. We don't have water..!!! (well - we don't manage our water well enough).
Do you think we will see the day when an Australian govt stops and thinks "If we secure our water future, we secure our economic future" ???
Stomwater harvesting, improved dams, mandatory rainwater tanks, grey water recycling, piping water from QLD and NT through to the Murray River...
Australia could be a food basket for the world - leaders in agriculture (so we don't simply rely on a minerals boom), energy - instead we are becoming overweight, under-skilled, maxxed-out consumers - MINI AMERICANS!!!!
We look down on the Americans as pampered, obese, poorly skilled (they have no competitive manufacturing any more), locust-like, "supersize me" consumers - are we so different?
Our government is not pursuing policies that are in any ones long term interest (well perhaps Asia - they can pick us up at a bargain price one day when crash like the Americans just have)