House prices to keep falling for years

[helicart]

I think it's inevitable, even though they know it leads to increased house prices, after all way back, before the current increase, the federal housing minister stated:

http://www.news.com.au/heraldsun/story/0,21985,25285409-664,00.html



and then they promptly increased it

well said Trevor....

confirms one of Ronald Reagon's greatest lines:

"The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"

 

[Beej]

well said Trevor....

confirms one of Ronald Reagon's greatest lines:

"The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"

Terrifying words indeed if the head of your government is a senile geriatric who's only claim to fame before politics was to act in a few "B" grade Hollywood westerns in the 50s.....

Beej

 

[gfresh]

What did George W do before politics? Oh that's right he managed to dodge the draft, was an alcoholic, did cocaine.. but then he was "born again" so was all fine again They know how to pick them!

So are the fixed rates a precursor to variable rates rising in 3-6 months time you think? So much for those long-dated fixed under 6%...

 

[helicart]

Terrifying words indeed if the head of your government is a senile geriatric who's only claim to fame before politics was to act in a few "B" grade Hollywood westerns in the 50s.....

Beej

And what was Obamarama's claim to fame? I mean apart from being a binge drinking, cocaine snorting, pothead?

Try some broader sources of news than Good News Week and The Glass House for Reagan's work experience pre President....

 

[Aussiejeff]

THE boost to the first home owners' grant will not be extended beyond June 30, Prime Minister Kevin Rudd has suggested. "The first home owner's boost, as you know, we have indicated that will conclude within a very fixed and finite time frame,'' he told reporters in Perth.

"It's had strong useful results so far, but I have got to say all good things must come to an end.''

http://www.news.com.au/heraldsun/story/0,21985,25373912-5005961,00.html

Where to for home prices after it is canned?

aj

 

[singlefished]

http://www.news.com.au/heraldsun/story/0,21985,25373912-5005961,00.html

Where to for home prices after it is canned?

aj

I don't think it will get canned completely.....

The temporary "boost" as such may be canned but I think the current $7K grant could possibly be permanently increased to $14K or higher for new houses with the current $7K remaining for existing stock or possibly disappearing altogether.

Just trying to read between the lines..... they have said the "boost" was temporary, nothing mentioned about adjusting the value of the base FHG to compensate though did they????

 

[mullys]

The so called end of the firsthome owners grant I think is one of the biggest things that is driving Sydney's current rise in houseing prices for houses under 500k.
Rudd is handing out money everywhere and now there's talk of a third stimulus! I havnt even got my first one yet. What a joke.
If its totally canned I think you will see house prices fall again, thats why I think it wont be.

 

[Trevor_S]

Terrifying words indeed if the head of your government is a senile geriatric who's only claim to fame before politics was to act in a few "B" grade Hollywood westerns in the 50s.....

The guy bought down the USSR, they tried to match his spend in the warfare budget and lost.

That aside, how is Rudd any more qualified or Howard ... ? Turnbull*, sure he is .. but the rest. They are politicians or bureaucrats, probably the worst people to run a country.

* no, that's not me being a Liberal devotee.

 

[Beej]

The guy bought down the USSR, they tried to match his spend in the warfare budget and lost.

Yea - the riskiest "all in" global geopolitical "poker" move since WWII. I lived in absolute fear of nuclear war as a boy and teenager because of the cold war arms race through the 70s and 80s......

Beej

 

[CamKawa]

http://www.news.com.au/heraldsun/story/0,21985,25373912-5005961,00.html

Where to for home prices after it is canned?

aj

Some newspapers this morning are saying the grant won't be extended while others are saying that it will. As I've said earlier in the thread I'd be surprised if Kevin doesn't extend it. I think Kevin is playing funny buggers at the moment implying that he will pull the rug on the FHBG after June 30 in order to entrap the last remaining home buyers into panic buying before June 30, rather than have them postpone the buying decision.

 

[helicart]

I think Kevin is playing funny buggers at the moment implying that he will pull the rug on the FHBG after June 30 in order to entrap the last remaining home buyers into panic buying before June 30, rather than have them postpone the buying decision.

You could be right....and Kevin thinks no one would be as smart as him to guess what he is up to.....he is such a self important little ear wax eating schoolboy in shorts isn't he.....

 

[kincella]

pressure grows as Melbourne's population races towards 4 million....and bless their souls, they are heading out into the suburbs....amazing growth of almost 75,000 each of the past 2 years....
and it is far more affordable living out there....compared to the cost of housing in the city...no wonder the train and road system is in chaos.....

all cities are experiencing growth....
our population grew by over 360.000 for the year....wow thats the size of a a big regional city......
cheers

ps I think the fhb grant will stay...its just the boost they may or may not remove...7000 is no big deal.....they should consider only a fhb grant for a new home...and none for existing houses

http://www.theage.com.au/national/p...ckets-to-4-million-20090423-agt5.html?page=-1

 

[MrBurns]

You could be right....and Kevin thinks no one would be as smart as him to guess what he is up to.....he is such a self important little ear wax eating schoolboy in shorts isn't he.....

I'm starting loathe the little prick, he really annoys me now.

He's got no right to withhold the decision on the FHBG, he is just assessing the potential damage to his poll ratings before he tells us his decision.

and he's got no right to extend it either, he's done enough damage, the little worm.

 

[gfresh]

Some newspapers this morning are saying the grant won't be extended while others are saying that it will. As I've said earlier in the thread I'd be surprised if Kevin doesn't extend it. I think Kevin is playing funny buggers at the moment implying that he will pull the rug on the FHBG after June 30 in order to entrap the last remaining home buyers into panic buying before June 30, rather than have them postpone the buying decision.

I don't think he will, not now.. wouldn't look good to be changing his mind over things and easy for political point scoring from the other team. "Trapping" people in, if the market did tank late in the year would also be pretty suicidal political wise. Imagine the screams..

You could be right....and Kevin thinks no one would be as smart as him to guess what he is up to.....he is such a self important little ear wax eating schoolboy in shorts isn't he.....

and Turnbull isn't ? I think they're both as bad as each other..

I'm starting loathe the little prick, he really annoys me now.

come on, you always hated him from day dot..

 

[MrBurns]

I don't think he will, not now.. wouldn't look good to be changing his mind over things and easy for political point scoring from the other team. "Trapping" people in, if the market did tank late in the year would also be pretty suicidal political wise. Imagine the screams..

He's backed himself into a corner now , if he drops it the market will plummet if he doesn't it inflates further and will eventually plummet more later.

He will be figuring how to delay this and more handouts till just before the election or call it early, he's worked out that FHBG boosting and cheques in the mail will ensure him success at the polls and the little worm will time it to suit.

 

[MrBurns]

..
come on, you always hated him from day dot..

Yes but he's manged to move it to a whole new level.

 

[helicart]

I'm starting loathe the little prick, he really annoys me now.

He's got no right to withhold the decision on the FHBG, he is just assessing the potential damage to his poll ratings before he tells us his decision.

and he's got no right to extend it either, he's done enough damage, the little worm.

hehehe......anyone that would have Lachlan Harris for a media advisor shows absolute contempt for the proletariat......like all delusion of grandeur types, Rudd despises the common man and plays him for a fool every time....

 

[Beej]

He's backed himself into a corner now , if he drops it the market will plummet if he doesn't it inflates further and will eventually plummet more later.

He will be figuring how to delay this and more handouts till just before the election or call it early, he's worked out that FHBG boosting and cheques in the mail will ensure him success at the polls and the little worm will time it to suit.

The whole argument is only about the BOOST being dropped. The original FHB grant ($7k/$14k), plus each states own programs and stamp duty concessions will remain regardless.

Whatever happens, the boost has already done it's work now. I think they will pull the boost, but might add something new to encourage purchase/construction of new dwellings. Either way the removal of only $7k extra boost will not have a dramatic influence now IMO. FHB numbers will drop back to the 15-20% mark (more in line with normal levels), but the market will be driven by the upgraders and a slow return of investors (investors maybe more towards the end of the year). Currently (anecdotally), a lot of investors are staying out so they don't have to compete in a mini-boom with all the FHBs - but the high rental yields and ability to lock in low interest rates do have some with a longer term view than many here chaffing at the bit.

Cheers,

Beej

 

[MrBurns]

The whole argument is only about the BOOST being dropped. The original FHB grant ($7k/$14k), plus each states own programs and stamp duty concessions will remain regardless.

Whatever happens, the boost has already done it's work now. I think they will pull the boost, but might add something new to encourage purchase/construction of new dwellings. Either way the removal of only $7k extra boost will not have a dramatic influence now IMO. FHB numbers will drop back to the 15-20% mark (more in line with normal levels), but the market will be driven by the upgraders and a slow return of investors (investors maybe more towards the end of the year). Currently (anecdotally), a lot of investors are staying out so they don't have to compete in a mini-boom with all the FHBs - but the high rental yields and ability to lock in low interest rates do have some with a longer term view than many here chaffing at the bit.

Cheers,

Beej

I think you'll find the removal of the boost will have a big effect on the market PLUS now we have the banks INCREASING mortgage rates so the time may have come for the fall.

 

[helicart]

Rudd and Harris are still too wet behind the ears to realize when you give something to the electorate for free, you take it away progressively by stealth....so it goes under the radar of the dim blondes and blokes that are the Aussie media....

he could have staggered it down, first drop approvals for existing homes in post codes within 20km of capital cbd's, then for all existing homes, then for new homes.

that would have kept it off the front page and out of the 6 o'clock news.

It also follows the main principle of big govt......make govt decisions so complex that the electorate doesn't have the time to examine whether you are being fair and reasonable....

As PJ O'Rourke astutely recognises...... "When it comes to govenment, complexity is fraud"
because it snows the public every time.