Whats your bet??? depending on this, it will surely change the lower end of the market for at least another 6 months..
What will happen to FHOG after Jun 09
- Thread starter Property Meister
- Start date
I voted for extended FHOG bonus with same grant.
As I drove to and from work today I passed quiet a few subdivisions and I did not see any subcontractors working and only passed one project home builder's ute on the way to work ( 30 minute drive ) everything is unusually quiet.
Regards
Sheryn
As I drove to and from work today I passed quiet a few subdivisions and I did not see any subcontractors working and only passed one project home builder's ute on the way to work ( 30 minute drive ) everything is unusually quiet.
Regards
Sheryn
To be honest i would like it to stop.... as it has lifted the prices of houses in my target area, and left me with very slim pickings. There are officially no bargains left for me, and that is quite annoying, and is going to cost me a pretty penny on my next purchase.
I still think the boosted grant is going to be extended, and voted as such.
I also think there is a possibility of the grant for new home builds being boosted even further, or some kind of "developer grant" added to help kick start the construction of homes.
I still think the boosted grant is going to be extended, and voted as such.
I also think there is a possibility of the grant for new home builds being boosted even further, or some kind of "developer grant" added to help kick start the construction of homes.
I think the grant will be extended, but probably in a slightly lesser form.
At the moment it means that some buyers can purchase a property with no savings at all, they even get cash back when they settle. It's a dangerous path to go down (lending money to someone with no savings history).
I also think that the government is spending a lot of money and the current level is unsustainable.
Whilst the grant is having a positive effect on the housing market, I do worry that perhaps the government is throwing money at the problem a little too quickly and is not stopping to measure the results. Interest rates have dropped so far, so fast, that the real effect on the economy may not be know for some time yet, but there's already strong suggestions of further large rate cuts.
I also believe that too much government interference is potentially even more damaging. Recession is part of the economic cycle. Throwing money around to avoid it may mean that it's simply delayed and when it does come it's actually worse than it could have been.
As a case study, the US should have gone into recession in about 2001 - 2002. Instead they threw money at the housing market which resulted in todays unstable financial markets and massive oversupply. At the same time they stimulated the economy by starting a war in Iraq (wars are very profitable for certain economic sectors). The result is a country trillions of dollars in debt. At the end of the Clinton administration the US was in surplus.
The list of US government intervention which has directly effected todays financial crisis has numerous similar examples of short term problems with long term ramifications, as does Australian history.
I believe that government intervention is a useful tool, but one which should be used very carefully and delicately. At the moment it seems like they're applying economic intervention with a very heavy hand.
At the moment it means that some buyers can purchase a property with no savings at all, they even get cash back when they settle. It's a dangerous path to go down (lending money to someone with no savings history).
I also think that the government is spending a lot of money and the current level is unsustainable.
Whilst the grant is having a positive effect on the housing market, I do worry that perhaps the government is throwing money at the problem a little too quickly and is not stopping to measure the results. Interest rates have dropped so far, so fast, that the real effect on the economy may not be know for some time yet, but there's already strong suggestions of further large rate cuts.
I also believe that too much government interference is potentially even more damaging. Recession is part of the economic cycle. Throwing money around to avoid it may mean that it's simply delayed and when it does come it's actually worse than it could have been.
As a case study, the US should have gone into recession in about 2001 - 2002. Instead they threw money at the housing market which resulted in todays unstable financial markets and massive oversupply. At the same time they stimulated the economy by starting a war in Iraq (wars are very profitable for certain economic sectors). The result is a country trillions of dollars in debt. At the end of the Clinton administration the US was in surplus.
The list of US government intervention which has directly effected todays financial crisis has numerous similar examples of short term problems with long term ramifications, as does Australian history.
I believe that government intervention is a useful tool, but one which should be used very carefully and delicately. At the moment it seems like they're applying economic intervention with a very heavy hand.
Agree completely, PT_Bear.
The thing that worries me most about the increased FHOG is the anecdotal evidence of the number of FHBs who are buying with little - or no - savings of their own. When interest rates begin their climb back up - which, inevitably, they will do - how are they going to be able to meet the increased repayments if they couldn't manage to save in the first place?
It's not difficult to foresee - at some stage down the track - mortgagee sales where the price achieved doesn't cover the outstanding mortgage. Then there will be bleating that "It's not my fault" ... along with the expectation of yet more government handouts.
As you said, "government intervention ... should be used very carefully", and the vote-buying policies of this government will, IMO, create many more problems than they think they may be able to solve.
Cheers
LynnH
The thing that worries me most about the increased FHOG is the anecdotal evidence of the number of FHBs who are buying with little - or no - savings of their own. When interest rates begin their climb back up - which, inevitably, they will do - how are they going to be able to meet the increased repayments if they couldn't manage to save in the first place?
It's not difficult to foresee - at some stage down the track - mortgagee sales where the price achieved doesn't cover the outstanding mortgage. Then there will be bleating that "It's not my fault" ... along with the expectation of yet more government handouts.
As you said, "government intervention ... should be used very carefully", and the vote-buying policies of this government will, IMO, create many more problems than they think they may be able to solve.
Cheers
LynnH
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You have to be joking the only shop I step foot in these days is Aldi!
I have my laptop which is a cheapie compaq about 6 years old now, car was secondhand and paid for in cash from a retrenchment a few years ago when I lost my company car so not sure why you think I buy doodads!
No longer in a financial mess either just for the record, went through a bad year just like tons of other people and emerging better than expected!
I have my laptop which is a cheapie compaq about 6 years old now, car was secondhand and paid for in cash from a retrenchment a few years ago when I lost my company car so not sure why you think I buy doodads!
No longer in a financial mess either just for the record, went through a bad year just like tons of other people and emerging better than expected!
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