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Australian first home buyers

Discussion in 'Real Estate' started by Tallis, 23rd Mar, 2014.

  1. Tallis

    Tallis Member

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    8th Oct, 2013
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    Location:
    Melbourne
    What possible reason would there be for Australia not offering a govt based home equity scheme? Govt kicks in 30% of the first home cost, getting a 30% payback when the home sells.
    Young home buyer wins with assistance, govt wins when home values rise and 30% is realised at sale, whole industry takes off with govt stimulation.
    What other creative ways are there rather than a system invented by grey suits working out of office 12?
     
  2. Terryw

    Terryw Well-Known Member

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    Sydney
    Complexity probably.
     
  3. Tallis

    Tallis Member

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    8th Oct, 2013
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    Location:
    Melbourne
    What rubbish

    Complexity hey!
    Read any if these threads and I,ll show you complexity.
    Laziness, poor public policy, bureaucratic malaise more likely.
    All it needs is one of the so- called experts here to make it his mission and it would happen...I guess they're too busy banging on about tax loopholes and negative gearing rorts
     
  4. stansfie

    stansfie New Member

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    Sydney, NSW
    Why not buy a property with equity already built into it...? ...that way it is already cash flow positive and you get the government grant as well - quids in! Have a look at some of these on our website at: www hauteproperties com au... I have a unit available in Gladesville with a 47% return for a switched on investor...if you?re looking for an income generating property contact us...
     
  5. Terryw

    Terryw Well-Known Member

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    Hmm who would be selling property for undermarket value in Sydney in this market?
     
  6. GregR

    GregR Reid Consultants

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    Location:
    Berwick Vic
    Tallis,
    The concept of the government doing anything that is effective or efficient just seems an impossibility. Think Pink Batts, think School Buildings and the list goes on.
    NRAS was in theory designed to stimulate housing construction in needed areas, well outside time frames, well under take-up and just not achieving the intended outcomes.
    The FHOG with added state bonuses, all it achieved was to help drive house prices up. The Melbourne market boomed in 2009 & early 2010 on the back on state government incentives and then stopped dead once these were withdrawn by mid 2010.

    I have trouble imagining the government being able to manage a shared equity scheme for first home owners let alone deal with the unintended effects of driving the property market further up. I can foresee that the government of the future will introduce a guarantee scheme for pensioners to take equity out of their own homes, just to relieve budget pressures from increasing numbers of pensioners coming from the baby boomers approaching retirement.

    It may be that Gen Y & Z may need to reset expectations and go back to how baby boomers and before started on the property ladder, buy what and where you can afford, use second hand and hand-me-downs to get started and then trade up over time. Alternatively they rent and start down the investment property path until they are ready and can afford to buy their own dream home with all the gadgets.

    Be wary of government intervention, unintended consequences are often a by-product of their actions and policies.
    Greg
     
  7. stansfie

    stansfie New Member

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    Thanks for your comment. I know it seems incredible but that is because of the way this investment works. The discount is provided to the buyer since they are essentially securing the land on behalf of the developer. This has a number of benefits for the developer and there the developer is happy to reduce the price of the unit for the buyer. This is not a standard off-the-plan property investment and is designed to offer better returns and lower risk than off-the-plan investments.
     
  8. jodie123

    jodie123 Active Member

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    15th Aug, 2012
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    Location:
    Brisbane, Qld
    If it was a mission worth fighting for then I have no doubt that the experts on this forum would run with it. However while what you propose is good in theory, unfortunately it doesn't always translate to real life.