All Topics / Help Needed! / FHOG will not be extended. What will happen to property prices?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of catsgravecatsgrave
    Participant
    @catsgrave
    Join Date: 2008
    Post Count: 14
    April 23, 2009 - 2:54 am

    Hi Guys,

    Kevin has confirmed that the FHOG will not be extended.

    http://www.news.com.au/business/money/story/0,28323,25373584-5013951,00.html

    I am still looking for my PPOR First Home. Do you think I should wait another 6 months and hope the prices will plummet low enough? or go for the rush before June 30. I just got my pre approval from NAB for $192k with my equity.

    Please let me know your thoughts.

    Cheers,

    Mliew

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513
    April 23, 2009 - 7:42 am

    hi if your only spending $192k i would go buy something as your going to get around $20k from kevin 10% saving straight away if you were spending half a million then i would say waiting is not a bad thing

    Profile photo of ajaydee73ajaydee73
    Participant
    @ajaydee73
    Join Date: 2009
    Post Count: 36
    April 23, 2009 - 9:41 am

    Given that the FHOG is a bigger proportion of your price range, you will have less risk of losing equity after the FHOG is removed. Property prices don't fall too fast because people hold out on selling as long as they can. You're more likely to see significant falls until 12-18 months after the FHOG is removed.

    Profile photo of catsgravecatsgrave
    Participant
    @catsgrave
    Join Date: 2008
    Post Count: 14
    April 23, 2009 - 10:28 am

    Hi Guys,

    I am actually putting in 50k of my own money and plus the $17k. I can borrow up to 192k. Does that make a difference?
    Please let me know your opinion.

    Cheers,

    Mliew

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    April 23, 2009 - 10:40 am

    If you're not in a big hurry, I'd hold off. The great rush by FHBs has overinflated the lower range places thereby eating up any benefit the grants have. That rush is only going to get worse now.

    Give it another 12mths and you'll have developers and sellers conditioned to accept less cos there'll be fewer buyers out there + interest rates likely to have gone slightly north by then, which will also reduce the buyer pool.

    Carlin

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513
    May 4, 2009 - 2:54 am

    do what you think is best, basicly you get approx $20k free money which is 10% savings on $192k after june 30 you will not get this so your purchase price will be approx $172k as you miss on the stamp duty and the fhbg. catsgrave is right prices will drop but in your case your buying in the very bottum of the market and i dont think you will c $192k properties drop much below $172k. you will probaly be about even in 6 to 12 months but if you buy right today at a good price then you will be better of in 6 to 12 months

Viewing 6 posts - 1 through 6 (of 6 total)

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