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Advice! FHB grant is back....

Discussion in 'General Property Chat' started by hammer, 11th Feb, 2016.

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  1. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    422
    Location:
    Darwin
    I have a well founded hunch that the Government will reintroduce the First Homebuyers grant for existing properties in an effort to get the market moving again.

    This is for Darwin.

    The market here is in pretty bad shape, so I can understand why they are keen to help things along.

    Anyone have any idea what it will do to the market? Normally I understand that it causes the market to rise....but what about in a severely depressed market? Does it still make a difference then?

    Need to get a PPOR. The initial plan was to wait 12-18 months whilst the market continues to drop. I fear that the introduction of the FHB will mean that I need to change my plans....

    I am classed as a FHB up here.

    Thoughts? Would really appreciate some input here....
     
    BigKahuna likes this.
  2. Befuddled

    Befuddled Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    251
    Location:
    Sydney
    When the FHBG was introduced in NSW, everything that met the grant criteria shot up almost overnight. In the end people had more to spend so they spent it. The grant money ended up in the pockets of developers and builders instead of the first home buyer.

    I would sit on the sidelines and watch the market until it bottoms out. This may be 12-18months but could be longer, can never be sure. Then go low-balling existing properties while the market sentiment remains down, and get something below its real value. Would also steer away from anything that qualifies for the FHBG
     
    Barny likes this.
  3. Barny

    Barny Well-Known Member

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    16th Oct, 2015
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    Location:
    Melbourne
    Kick back and wait some more as befuddled said. It won't push the market up. And definitely low ball when it's bottomed or when you think it's bottomed. I don't think the bottom will hit till 2-4 years away, but that's one persons opinion.

    Best of luck
     
  4. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    422
    Location:
    Darwin
    Thanks for the advice guys....I'll keep plugging away with the original plan. Every day my deposit gets bigger and the prices get smaller...
     
    Barny and Bran like this.