Proposed doubling of the first home owner's grant

[eastside]

This is in today's Herald:

The Herald understands the Government is planning to double the first homeowners grant from $7000 to $14,000 to invigorate the housing market which is slowing.

Anyone know whether it applies to new homes only, or to all homes? Or are they still working that out? Won't throwing around all that extra cash (bringing forward the tax cuts, increasing welfare payments) eventually increase inflation, resulting in rate rises again?

 

[bailz66]

They seem to be trying to stimulate the economy

If the economy is as flat as they think it is then it shouldn't drive inflation at all.

I think the economy is standing up ok so this sort of thing could drive inflation quite a bit higher.

That said its going to help out the flat property market which is good and bad as i would like to be in a position to get another property before that happened.

 

[buzzlightyear]

This is in today's Herald:

The Herald understands the Government is planning to double the first homeowners grant from $7000 to $14,000 to invigorate the housing market which is slowing.

Anyone know whether it applies to new homes only, or to all homes? Or are they still working that out? Won't throwing around all that extra cash (bringing forward the tax cuts, increasing welfare payments) eventually increase inflation, resulting in rate rises again?

Eastside, this is broadly speaking the current program rules. This is the link to the program website.

Given that an announcement will be made around midday today, not long before we find out. Probably just doubling the numbers is my guess. Which will over time, just add $7k to the price of a typical (?) FHO's property purchase.

Good news for those who have IP's in the lower price points.

 

[eastside]

What I have noticed in my househunting the last few weeks is that banks seem to be building in a 5% drop on values. For example, someone makes an offer for 450k, offer is accepetd, loan application put in, bank turns around and says it's only worth 428k, and as a result property back on the market. This seems to be happening consistently, even to people on decent secure incomes, so it's the banks building in an expectation of a 5% market drop.
What if the government knows something that we don't know about yet, and they are trying to buffer the economy?

 

[Max Carnage]

It's a bit funny. The government's first home savers accounts should sap some of the demand from FHBs for the first few years of operation (it encourages them to delay purchase) and raising the grant (I assume with time constraints) seems to be an effort to encourage FHBs not to delay their purchase!

 

[Nathan]

once again they are inflating the housing bubble. this is great news for the market...

 

[Humphrey]

It's a bit funny. The government's first home savers accounts should sap some of the demand from FHBs for the first few years of operation (it encourages them to delay purchase) and raising the grant (I assume with time constraints) seems to be an effort to encourage FHBs not to delay their purchase!

It sure is sending mixed messages.

FHB's need to contribute for at least four years to the first home savers account.

 

[Max Carnage]

once again they are inflating the housing bubble.

Trying to halt its deflation perhaps?

 

[Nathan]

Trying to halt its deflation perhaps?

Yes of course thats what it is...

However it has inflationary aspects..

 

[tess85]

ooh this is interesting. as a first home buyer, I'd love it if the grant was doubled... but realistically I can just imagine house prices going up by $7k everywhere?

Reminds me of this link: http://blogs.domain.com.au/2007/06/doubling_the_first_home_owners.html
a little outdated but some parts still relevant.

 

[Trogdor]

Stupid question - is this a fed govt grant on top of the state grants, or same thing?

 

[Twitch]

Doubled for existing housing, and tripled for new stock.

 

[Trogdor]

Doubled for existing housing, and tripled for new stock.

Thanks twitch!!

So it will be 14k for existing properties, and 21k for new stock??

Another stupid question - if you had an "interest" in property via a discretionary trust (i.e. joint appointer/shareholder of ccorporate trustee) would this count as "ownership" for FHBG purposes?

 

[pokka]

I was about to send in my application for the first home owners grant today!!! I guess I'll be postponing it now for the extra $7000K!

 

[letiha]

I was about to send in my application for the first home owners grant today!!! I guess I'll be postponing it now for the extra $7000K!

I would check to see what date it starts, I bet its the contract date that counts...meaning today's date.

 

[pokka]

Bought my unit about 4 months ago now but haven't applied for the FHOG. Reading the news articles, it seems that as long as you purchase one before 30 June 2009 and have not yet receive a FHOG, then you are eligble... but I guess we'll have to wait for more details..

 

[tcocaro]

does anyone here know what new housing means? (technically) i.e. does it mean house & land or does it include purchasing new townhouses & apartments off the plan etc?

 

[tess85]

I believe new housing means you have to build your own place.

 

[BoatBoy]

Google is your freind

does anyone here know what new housing means? (technically) i.e. does it mean house & land or does it include purchasing new townhouses & apartments off the plan etc?

http://www.osr.qld.gov.au/fhog/first_home_owner_grant_changes.shtml

First Home Owner Grant Changes

The Australian Government has announced a First Home Owner Boost, which supplements the Queensland Government funded First Home Owner Grant Scheme.
According to the announcement from the Commonwealth:

• First home buyers who purchase established homes will receive a boost of $7000 that will double the grant to $14,000.
• First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000, provided the home meets their relevant state or territory energy efficiency and sustainability standards.

First home buyers will be eligible for the First Home Owner Boost on contracts entered into from 14 October 2008 to 30 June 2009.
As soon as more information is available it will be posted on this page.

Dave

 

[tcocaro]

thanks, i knew of the definition just wanted to confirm if it included units and townhouses. I have since spoken to HIA who have confirmed it does indeed.

Regardless thanks for the details.

http://www.osr.qld.gov.au/fhog/first_home_owner_grant_changes.shtml



Dave