Confirmation that the First Home grant will be cut back in June

It is causing an abnormality in the market - a recent 2 bed unit in Engadine advertised for $319k sold for $390k due to 1st home buyers.

Some people reckon the market will drop by 20%.

Rgds

kevinb

 

LMAO 10% rent increases in 2009! That's the funniest thing I have heard this month! I think rising unemployment and falling house prices will have a relatively negative effect on rent increases...

Personally I'd be all for the government subsidizing the development of low cost multi apartment building complexes (Hong Kong & Singapore style) to help with the supply issues as long as they were being built around major transport or infrastructure facilities. I think we as Australians need to get away from this idea of us all getting our own bit of dirt, it just doesn't work when you have 1 million+ living in a city, resources get spread to thin and then everything costs more or is inefficient.

 

I don't see it happening, My rent has gone up 10% already. There is just not enough desirable homes.

 

It was always touted as a temporary boost and so it's not a bad thing that it's over. It's served it's purpose, kept the RE industry alive and kicking for a while longer, not to mention other related industries ie: brokers, conveyancers, building inspectors etc and has had the desired effect.

Time to move on and beyond the FHB and all that it's created. Back to reality and opportunity in the housing market

As far as rents go, Sydney now has 1.2% av vacancy rate, according to latest REINSW figures. Still a shortage, but I would expect this will improve with FHB's moving into their new PPOR's and freeing up space.