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The future of Australian property prices

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MACCA350 said:
Not sure if this is a Victoria specific grant but on June 30th the First Home Bonus will be removed.

The Bonus is currently $11,000 for new homes and $2,000 for established.

So in Victoria for a FHB purchasing a new home, the grant will be reduced from $18,000 to $7,000 for building contracts signed after June 30.

I doubt the $2k reduction for established purchases will have any effect on auction clearance rates.

cheers
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Scratch that, Victoria's State budget just released has actually increased the FHB Bonus for newly constructed homes by $2,000 instead of scrapping it.

So for Victoria instead of dropping to $7,000 after June 30 it's going up to $20,000 which includes both state and federal grants.

cheers
 
robots said:
hello,

good day brothers, Melbourne killing it again

well been a great couple of weeks, settlement on the 6th May 2010

CBA and solicitor got it all under control, just fantastic,

thankyou
robots
Click to expand...

Might have to cut back on your daily cuppachino then coz -

MACCA350 said:
RBA cash rate up .25% to 4.5%

cheers
Click to expand...

That's quietened them down a bit - pop goes the bubble(s) ;)

MACCA350 said:
Scratch that, Victoria's State budget just released has actually increased the FHB Bonus for newly constructed homes by $2,000 instead of scrapping it.

So for Victoria instead of dropping to $7,000 after June 30 it's going up to $20,000 which includes both state and federal grants.

cheers
Click to expand...

They are that desperate to keep the bubble going? More good taxpayers money propping up the ponzi scheme called negative geared property investment?
 
I have been estimating a FHB grant of between 30,000 to 40,000 for new homes....so Vic State govnuts have led the way with 20,000, lets see what the feds put up in the May budget....
theres no money left for cash handouts....and both the feds and state gvts rely on huge money in taxes on property transactions....so they will need to entice the buyers, to keep feeding their dependence on these taxes...

the mining supertax will not pass muster...or if it does....so do our miners, and all the tax money that fed into our system.....they will flee overseas...
accordingly the China syndrome will dissapear....leaving us bankrupt...

looks like the PIIGS countries will bring down the Euro dream/nightmare...
Spain is in trouble....Australia...which no one dares mention....is looking almost as bankrupt.....with not one competent person in sight, or in charge, just a gaggle of the most incompetent people , that call themselves the labor party
 
kincella said:
I have been estimating a FHB grant of between 30,000 to 40,000 for new homes....so Vic State govnuts have led the way with 20,000, lets see what the feds put up in the May budget....
theres no money left for cash handouts....and both the feds and state gvts rely on huge money in taxes on property transactions....so they will need to entice the buyers, to keep feeding their dependence on these taxes...

the mining supertax will not pass muster...or if it does....so do our miners, and all the tax money that fed into our system.....they will flee overseas...
accordingly the China syndrome will dissapear....leaving us bankrupt...

looks like the PIIGS countries will bring down the Euro dream/nightmare...
Spain is in trouble....Australia...which no one dares mention....is looking almost as bankrupt.....with not one competent person in sight, or in charge, just a gaggle of the most incompetent people , that call themselves the labor party
Click to expand...


Kincy, they offer the grant knowing full well that they get it back through stamp duty. All they are doing is pulling forward demand. What do you think will happen when demand slows, and prices/interest rates are higher? Keep increasing the grant? This would be hilarious to watch if it wasn't for so many young families having their futures destroyed.
 
TOBAB said:
Very funny! They look so unhappy.
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Not a good situation,

I feel sorry for these young people, the property bubble should have been popped before too many innocent first home buyers got swept up, homes should not be used as tools for speculation.

Negative equity must be a horrible feeling.
 
both state and fed govnuts have their 'snouts in the trough of taxes'
apparently the general population would rather their neighbours cough up and pay those giant tax rip offs....instead of all of us being hit with another giant tax to replace it...
so the govnuts will continue to 'gift' a grant to new home buyers....knowing full well it guarantees the giant tax stamp duty rip off, is paid up front and in full....
its really just a round robin....states handout 20,000 to fhb.....who immediately hands back 20,000 to the state govnuts...

alternatively the states will demand the feds cough up more taxes to pay for both govnuts excesses....for the pollies overseas jaunts...I mean holidays...

it has a dual purpose....it make the pollies appear to be helping fhb, and increasing the housing supply...
so all in all....pollies and fhb walk away with a warm and fuzzy feeling....
and it makes the pm and team look good....

the average Joe will not wake up to this scam....nor the average mums and dads....
so you can bet it will continue...
 
I think the real worry is if China does slow down, the 'super tax' from the miners will dry up and confidence will leave this country like you have never seen it before. It just worries me when the only people keeping this country afloat at the moment are the same ones the government is trying to screw over.

Interest rates to drop in 18 months time? :) said it here first.
 
cutz said:
Not a good situation,

I feel sorry for these young people, the property bubble should have been popped before too many innocent first home buyers got swept up, homes should not be used as tools for speculation.
Negative equity must be a horrible feeling.
Click to expand...

Get a grip.

These interest rates are due to excessive Govt Spending which has in turn caused inflation which could get much worse when Greece/Spain/ Portugal
all get bailed out by world banks---knock on effect---inflation!--Cost of money.

You reckon they have a long face.

Bet you have no sympathy for those of us with multiple holdings!!

But all to happy to see the self funded retiree not drain the Govt/Public Coffers!
 
Tech you are right of course....some of us are saving for our retirement, not spending then waiting for the govt to kick in with a flamin pension later...
or waiting for the govt to protect us, with hand outs, or cover our backs...

I believe the RBA got it horribly wrong...with 6 rate rises in 7 months...
I feel for the kids who just wanted a roof over their heads.....the economy is not flying along or going well at all....its just spin to pretend the govt is doing a good job and should be re-elected.....
****I bet rates come down within 3 months......or remain unchanged as the hiatus sets in........
.............................on another note I copied my post from another site....in response to posters who think high interest rates are good for the economy......

unlike some, I care about the whole community...not just my own back...
whereas in contrast most of the chatter on this site, is for interest rates to go high, so some other poor bugger will lose his house, in order for some of you to buy it cheaply...
......there is a bigger community spirit that some of us adhere to, its called looking out for our fellow man....and family, not just the selfish looking after oneself scenario...

if the interest rates are crucifying the rest of the community, small business etc....that will in turn create unemployment, small business are the biggest employers in this country....when small business closes its doors it affects everyone in each of those communities.....
 
The government needs to abolish negative gearing on exisiting properties
& restrict it purely to new builds only on new/released land. Demolition of existing housing to build new would not qualify for negative gearing either as the land is not new.

This will curtail the soaring property prices while providing housing for the increasing population. As a secondary effect, new communities will be established around the new properties which = new jobs, opportunities etc.

Like I've said in another thread, when the demand from China declines or their bubble bursts Australia will not be prosperous anymore, and therefore not attractive for international investors. Australia's prosperity is only due to the mining boom, and the housing boom is a direct result of this. It's not rocket science.
 
Australia's prosperity is only due to the mining boom, and the housing boom is a direct result of this. It's not rocket science
Click to expand...

Ke!?
 
kincella said:
I believe the RBA got it horribly wrong...with 6 rate rises in 7 months...
I feel for the kids who just wanted a roof over their heads.....the economy is not flying along or going well at all....its just spin to pretend the govt is doing a good job and should be re-elected.....
****I bet rates come down within 3 months......or remain unchanged as the hiatus sets in........
Click to expand...

Didn't hear anyone (who have a vested interest in property) complain when the RBA dropped rates dramatically? - although i could be wrong
This is looking very familiar to the US housing market. Just like in the US when they dropped rates to 1% after 9/11 which led to the housing boom, although ours was slightly different. We were already in a bubble but the RBA dropped rates dramatically to sustain the babble and ultimately making it worst when it pops.



unlike some, I care about the whole community...not just my own back...
whereas in contrast most of the chatter on this site, is for interest rates to go high, so some other poor bugger will lose his house, in order for some of you to buy it cheaply...
......there is a bigger community spirit that some of us adhere to, its called looking out for our fellow man....and family, not just the selfish looking after oneself scenario...

if the interest rates are crucifying the rest of the community, small business etc....that will in turn create unemployment, small business are the biggest employers in this country....when small business closes its doors it affects everyone in each of those communities.....
Click to expand...

If you did care about the community then wouldn't housing affordability be the goal? As it is for the housing pessimists who want to see free markets control the price - not government manipulated schemes.

The only thing I see you caring about is sustaining or hoping for growth with ultra high prices. That doesn't help the average joe.
 

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