WA's peak real estate body has warned scrapping the $7000 first homeowner grant for established properties would disadvantage 70 per cent of first home buyers.
Real Estate Institute of WA believes the Barnett Government is poised to axe the grant in tomorrow's State Budget announcement.
REIWA president David Airey says the signs were "worrying" for most home buyers who preferred established homes and would distort the market "at a crucial time in its recovery".
“Other states which have done away with stamp duty relief and changed the rules on the FHOG have seen the numbers of first home buyers crash through the floor,” Mr Airey said.
Yes indeed why should we tax payers prop up first home buyers. Woops did you miss out on $7K with your silly whinging about prices being too high.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
I would welcome this move, promote new construction over existing housing. Would be even better if they increased the grant to $12,000 to $15,000 as $7,000 does not even pay for costs.
I would welcome this move, promote new construction over existing housing. Would be even better if they increased the grant to $12,000 to $15,000 as $7,000 does not even pay for costs.
Entirely possible though. I believe Barnett has his finger on the pulse and knows the economy needs an injection right now.
I would welcome this move, promote new construction over existing housing. Would be even better if they increased the grant to $12,000 to $15,000 as $7,000 does not even pay for costs.
You 'n Harry Triguboff both maybe Mike? Shouldn't be too surprising if it happens - The powers that be surely do want to stimulate the residential construction industry.
Dear ole Harry's at it again - Doing his thing - It's just about impossible that interest rates could ever fall too low in his book I reckon ... :
Think you've also gotta be careful regarding promoting new builds too much Mike. Lots of us bears reckon the German property market is wonderful - Because it didn't boom along with the rest. Though it seems that there was a reason for it - Namely it boomed ('n busted) a decade earlier - Primarily because their guv went nuts stimulating new builds with tax payer funds post reunification:
I would welcome this move, promote new construction over existing housing. Would be even better if they increased the grant to $12,000 to $15,000 as $7,000 does not even pay for costs.
Maybe the west is different, but in the east making the grant only available for new housing has done nothing to stimulate construction.
Quote:
REIWA president David Airey says the signs were "worrying" for most home buyers who preferred established homes and would distort the market "at a crucial time in its recovery".
Removing a market distorting grant will distort the market? WTF?
This is as embaressing as your wa is in recession thread. Someone merely suggests it and because it feeds your personal bias you post it as fact. You can are allergic to facts.
I am the love child of Tony Abbott and Pauline Hanson
If governments want to help FHBs they should implement the following policies:
1) Shift negative gearing to only be eligible on new properties. (you can’t negative gear on a property that is more than 10 years old). This makes it more attractive for investors to buy an OTP property and negative gear it for 10 years.
2) Give investors stamp duty exemptions on new builds.
3) Let the government go guarantor on loans to FHBs. The government is already implicitly backing property, why not just back FHB, it won’t cost anything upfront. If the government is guarantor then the banks will lend more to FHB so they can compete with the remaining investors and owner occupiers in the existing market.
Implementing these three policies will shift investors to new builds and allow FHBs to get access to the existing property market.
Buying off the plan is high risk and pushing FHB into this area is not fair. Investors can handle the risk, FHB not so much.
With more investors buying new property we might get that transition that the RBA so desperately wants post mining boom.
Agree, awesome move as it encourages FHB's to build, not churn existing property. Leave that for the investors.
If they feel they need to kickstart construction in general, do what SA govt is doing, offering a HCG - Home Construction Grant - of $8,500. HCG is paid to any individual (not just FHB) to build any house in SA, only condition being land and build value maximum of $400K, and on sliding scale down to NIL at $450K or higher.
I've claimed one already, and if builder can contract the second soon, will claim another around Christmas.
I'd like to do something in Perth, but nervous about that market. What is/may be a buyers market I feel will turn to a sellers market soon. Modest falls in line for Perth I feel. Nothing to be overly concerned about, property goes up and down. You should be able to service your own debts, not be reliant of property growth to cover payments (as I know some people do).
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