They know they have to stimulate their rotting economy somehow.
Perth is going downhill fast, they seem to be dreaming that stimulating construction will save this basket case about to hit the wall.
Perth is possibly the worst place to park real estate dollars right now. you mean vendors grant
Hi Timo, The property market in Australia is orientated towards people buying their own property (home). The government does not under any circumstances want to own property that is occupied by the people. So we have generous tax advantages, cash incentives taken from say people who rent and pay tax and part of that tax is given to the FHB people. So it is a biased game. Think of it as a weighted penny. Some times a shock goes through the property market and yes house prices can go down. But in the capital cities the price goes up again, or that has been the history of property prices in Australia. If we think a little further, and this really needs some debate maybe even a new post made of it. In real terms most things we as humans use goes down in price. Think of what a car cost in real terms say 40 years ago. Think of the price of computers, power tools and white goods over the same period again in real terms. Not to mention clothes. Houses go up in price. This is against the trend. So we have to ask why. And not the bullshit reasons. We need the real reasons. Land is not in short supply. We have the most sparsely populated country in the world. The cost of building has gone down not up. Please work in real terms not nominal. So if we have lots of land and low building material costs why is housing sooooooooo expensive in the land of Oz???
ozz
7 Aug 2013, 11:01 PM
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).
All good.
Well done, Australia needs more people like you. Peter from Perth
Good news. Grants should only be provided to generate construction of new dwellings.
While I understand the logic behind this, building a home is not easy here in oz either. First you need to find the land, then choose a house builder, all of whom are masters of deception (what you think you are getting compared to what you end up with). Next you have almost a year and a half to wait for the house to be built and in the meantime probably having to rent and eventually be paying rent AND a mortgage as well!!!!!!
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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.
Your lack of spelling skills are 'embarrassing' Timmy.
Buswell actually gave it away on talkback.
The budget slash and burn mission the Libs are on actually backs up my position.
They could also take the savings further and remove stamp duty relief from existing properties for first time buyers under 500k.
Your lack of spelling skills are 'embarrassing' Timmy.
Buswell actually gave it away on talkback.
The budget slash and burn mission the Libs are on actually backs up my position.
They could also take the savings further and remove stamp duty relief from existing properties for first time buyers under 500k.
This would give an extra incentive to build.
Yes, he did appear to allude to doing it didn't he?
I suppose that doesn't necessarily mean he will but he was making the noises.
skamy
7 Aug 2013, 08:27 PM
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.
So you're not okay with the fat tax advantages available to investors either? Specifically, which help them out-compete first time buyers. So they can buy existing houses and recycle them for ever higher prices.
At least such a grant might encourage more stock to be added, though it too is likely to feed into rising prices.
Mr Buswell also confirmed there will be changes to the State's first homebuyers' grant scheme.
Currently the Government provides $7,000 for purchases of both new and established properties. Under the changes, the grant for established homes will drop to $3000, while the new house grant will jump to $10,000.
Seems reasonable although why bother with $3000 at all for established homes, its chook feed. $13,000 for new construction would be a lot better. Still a step in the right direction.
Hi Timo, The property market in Australia is orientated towards people buying their own property (home). The government does not under any circumstances want to own property that is occupied by the people. So we have generous tax advantages, cash incentives taken from say people who rent and pay tax and part of that tax is given to the FHB people. So it is a biased game. Think of it as a weighted penny. Some times a shock goes through the property market and yes house prices can go down. But in the capital cities the price goes up again, or that has been the history of property prices in Australia. If we think a little further, and this really needs some debate maybe even a new post made of it. In real terms most things we as humans use goes down in price. Think of what a car cost in real terms say 40 years ago. Think of the price of computers, power tools and white goods over the same period again in real terms. Not to mention clothes. Houses go up in price. This is against the trend. So we have to ask why. And not the bullshit reasons. We need the real reasons. Land is not in short supply. We have the most sparsely populated country in the world. The cost of building has gone down not up. Please work in real terms not nominal. So if we have lots of land and low building material costs why is housing sooooooooo expensive in the land of Oz???
Well done, Australia needs more people like you. Peter from Perth
I'd suggest the market is oriented towards infestors who want to speculate at the detriment of FHB and Australians in general
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.
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why is housing sooooooooo expensive in the land of Oz???
