Australian first home buyers

Discussion in 'Property Market Economics' started by Tallis, 23rd Mar, 2014.

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  1. Tallis

    Tallis Member

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    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. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Complexity probably.
     
  3. Tallis

    Tallis Member

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    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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    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. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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

    GregReid Well-Known Member

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    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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    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.
     
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  9. jack0194

    jack0194 Active Member

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    Ok, resurrecting an old thread here:

    For someone that is looking to buy there first home in the future (let's say 4-6 years) what are the things, you must have in place before you even consider to start saving for your first home.
     
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  10. jack0194

    jack0194 Active Member

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    EDIT: The other thing that I was going to put in there was if you happened to have anything like credit cards, car loans, etc I even if there all paid off what impact would this have on your credit score? And what credit score should you aim to have when going for a home loan?
     
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  11. twisted strategies

    twisted strategies Well-Known Member

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    A. employment security ( whatever that means currently )

    B. a good credit record ( having no record at all , might leave you only sub-prime options , been there done that , please try to avoid that )

    *** EDIT: The other thing that I was going to put in there was if you happened to have anything like credit cards, car loans, etc I even if there all paid off what impact would this have on your credit score? And what credit score should you aim to have when going for a home loan? ***

    sorry i cannot help there , after my experiences with a loan shark ( OOPS international finance conglomerate ) my only excursions into debt/credit is to invest in corporate debt , and i reckon i have got even AND my property for free

    C.. an intense understanding of mortgage finance ( i suggest you start learning soon ) , DON'T trust tour lawyer to do it all for you and GOD FORBID you blindly trust the vendor's legal team

    D. a forward plan for example , is it to be the family nest forever , or say home for 5 years and a rental after that , OR a home first and a redevelopment project later OR home then home/business

    ( all this makes picking the right place at the right price much easier )

    suggested option , substantially MORE saved than the minimum deposit ( and extra costs ) say at least 20% down ( and $$$ for costs and legal wranglings if needed ) ( remember to keep those cash reserves in a SEPARATE account , preferably in a completely unrelated bank )

    E. a good understanding of home lending finance ( sometimes fixed interest it great , sometimes variable is awesome BUT you need to be able to read your contract well enough to know if swapping strategies is a wise choice for you )

    knowledge is POWER ( have a sound understanding before you consult your professional experts .. lawyer , mortgage broker etc etc )

    cheers

    good luck

    a pearl of wisdom from an old real estate salesman ( not me ) when selling residential property ,
    LISTEN to the clients take them to the closest match on your books and let THEM fall in love with the home , if they don't take them to the next closest ... anything else isn't worth the drama and paperwork

    ( from the home-buyers side the moral is .... have your ducks in line first , it is very hard to make rational decisions when you are in love )