Hello,
Well it seems the next point on the investors agenda is the FHOG … do you this the end of this scheme will have any influence on future confidence.
PS
Just received this from a property email I subscribe to (Terry Ryder's Hotspotting);
The idea that the first-home buyers market will stop on 30 June (the deadline for the First Home Owners Grant boost) is gaining traction in the media but it is based on ignorance and misinformation. A number of organisations have surveyed first-home buyers to determine what is driving the current strong activity at the bottom end of the market. The findings in each case are pretty much the same: the biggest single motivation for buyers in the current market is soft prices, and the No.2 inspiration is the low level of interest rates (about 4 percentage points lower than they were eight months ago). A third, relatively minor factor is the FHOG. In one survey, the FHOG was a prime factor for only 8% of first-home buyers. These findings suggest that the health of the market does not hinge on what the Federal Government decides to do with the FHOG after 30 June. It?s worth keeping in mind that the FHOG has existed since 2000 and will continue to exist after 30 June ? it may be pruned a little, or it may stay the same, or it may be increased. What is unlikely to change, however, is the low level of interest rates and the attractive home prices, which are far more important in the decision-making of first-home buyers.
Andykirby,
AHH, there maybe some truth in what Terry says, but, most people they surveyed probably did not think very hard about where their deposit was coming from.! If they now loose $7000 from their deposit then that will have a very large effect on their capacity to borrow, thus they will have less money to buy, thus low value houses will eventually reduce in value to where the prices are affordable to First Home Owners.
I guess that the impact will be the next 12-18 months as a lot of first home buyers will rent out their PPOR after taking freebies of A$ 24000 (NSW) and futher deepening of GFC… The real value of property price will be tested then…. UNLESS Rudd Bank decides to give away another A$200b to BOOST
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