Should first home buyers buy a house now or wait for the federal budget?

What is the First home buyers grant?

There was already a first home owners grant (FHOG) in place which is a $7,000.00 grant for eligable first home buyers.

What is the First home owners boost?

  • an extra $7 000 to first home buyers who purchase an established home; and
  • an extra $14 000 to first home buyers who build a new home or purchase a newly constructed home.

First home buyers will be eligible for the Boost on contracts entered into between 14 October 2008 to 30 June 2009 (inclusive).

This means the FHOG is now $14,000.00 and but if you purchase a newly constructed home you will get $21,000.00.

Should first home buyers buy a house now or wait for the budget?

I was watching Sunrise with Mel & Koshie this morning and they were interviewing Kevin Rudd’s federal leader of government business Anthony Albanese. The government will not confirm if the first home buyers grant is going to be continuing or not. At the moment the first home owners grant is available Until June 30. This raises the question: Should first home buyers rush out and buy a house now or wait for the budget and risk missing out altogether?

Buying your first home is no doubt a hard decision to make, with new uncertainties arising every day. Considering that it has been confirmed by a number of souces that Australia is facing a recession, how  could they put this kind of pressure on the first home buyers. Its like saying “buy now or miss out!”.

Watch the full interview http://cosmos.bcst.yahoo.com/up/player/popup/?rn=1341467&cl=13132107&src=y7lifestyle&ch=

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Comments

  1. Garth says

    USA Subprime Crisis…. What did it prove? Home grants and grants for first home buyers are worthless if the props are gone. The USA is in recession. We are not yet there. Most of our money is on visa bank carded to China .
    New Zealand intends to reform, rather than re-regulate. They do not plan to inflate their economy with borrowed money. It’s a sensible strategy that one accepts the reality of the circumstances.
    In other words no cash bounses. When the war ended in 1945 men had to line up to get food, money, and jobs. In the depression there were no baby bonuses, no handouts, or no tax payers money available. But we were all positive and we did it our way. Economics is about the way the world is, not the way we want it to be. The free market is like a bathroom scale. We might not like what we weigh but we can’t pass a law to change it.

    Garth

  2. mitz says

    The downside of the First Home Owner Grant is tax breaks on investment properties. All they do is push up the price housing artificially, therefore making the average house less affordable for the low income earners. This bubble will burst. It’s handing out loans to people with little or no hope of repaying it. Once the artificial props were removed in the USA the subprime crisis began.

    Quoted from http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
    “The subprime mortgage crisis is an ongoing financial crisis triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States, with major adverse consequences for banks and financial markets around the globe. The crisis, which has its roots in the closing years of the 20th century, became apparent in 2007 and has exposed pervasive weaknesses in financial industry regulation and the global financial system.”

  3. LIZ says

    I am all for the First home owners grant or subsidy..this is a stimulus that is actually working. It generates the GST and plus keeps a small army of tradesmen in work which generates income tax for the government. The first home grant self funds and stimulates employment. We should retain this on new homes at least. Also the government should let us know if it is to continue, otherwise people will rush to get it and get themselves in trouble.
  4. LIZ BRENNAN says

    All bonuses have to be payed back .This is not Kevin Rudd’s money, it is not even tax payers money. It is money borrowed from china.

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