FHOG - So you think it will be continued in the next FY Budget?

Viewing 9 posts - 1 through 9 (of 9 total)

maree_bradross
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March 26, 2009 - 5:10 am
As the title suggests………………………
WJ Hooker
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March 26, 2009 - 9:51 pm
Maree,
            It will probably revert back to $7000, I don't think the government can afford to continue with the $14,000.
But, if so will create a large drop in house prices, especially the low end prices..
maree_bradross
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March 26, 2009 - 9:56 pm
Sounds good – hope your right
JETT
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March 27, 2009 - 2:01 am
Becareful who you take advise from, Maree
WJ Hooker
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March 27, 2009 - 2:32 am
JETT,
          It's not advise, it's only my opinion or guess. I don't tell people that what I say is true or will definitely come true. It's only a forum for peoples opinions, so people can get a feel for what others think.
          Everyone can have a different opinion than me and that's fine. No offence taken.
daniellee
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March 27, 2009 - 2:33 am
Hi
I was just thinking about the FHOG boost the other day, while checking out some property prices that hace gone through the roof in a couple of suburbs that I am keeping an eye on.
The lower-end of the market is kept buoyant with the FHBs and the FHOG boost, yet the number of properties available on the market has fallen to one-third its peak here in Melbourne.
The FHOG boost has simply brought forward demand from FHBs who already had the money to buy, or were almost ready with the money to buy. That was the first rush back when the FHOG Boost was introduced in Oct/Nov 08, setting the market to bubble nicely. If a whole lump of FHBs have already gone through, that could leave fewer FHBs available to prop up the market.
1 – So, there could be a FHBs rush to buy property should the FHOG Boost end by 30 June;
3 – or if the FHOG Boost is extended, the market will normalise as the urgency to buy goes away, which also means an opportunity for investors;
3 – the Boost ends and coupled with tightening credit such as the rapidly disappearance of low docs and 95-100% LVR loans, will see the weaker FHBs exit the market. Less demand means vendors will have to adjust their expectations and could lead to lowering asking prices. More buying opportunity for those who are cashed up.
Lets see what happens.
Regards
Daniel Lee
god_of_money
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March 27, 2009 - 3:08 am
Probably DOUBLE BOOST to combat with tighten lending criteria LOL
kn_19_ht
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March 27, 2009 - 4:33 am
good post!
i am a first home buyer..also debating whether to enter the market pre june 30..or wait and see..
friends are saying that continuing the FHOG will be a disaster for the economy…as it will create this "bubble"…
ive also heard that..if the FHOG is discontinued..it will bring property prices down at least 5%..
any thoughts or advice..
duckster
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March 27, 2009 - 9:57 am
I was watching a business program on ABC last Sunday morning and the discussion of concern was that an extended FHOG would create an explosion in inflation once the world wide down turn ceases. One suggestion was rather than a free handout of tax payers money it could be a loan scheme similar to the HELP used for university students fees.