First Home Owner Grant and Private Real Estate Sale
Private real estate sale with no agent and no commission through Privatepoint, the real estate by owner free private real estate sale website.
Some news for private real estate sale and for sale by owner property owners is that Prime Minister Rudd has just announced that the first home buyers grant is to double to $14,000, and then increase again to $21,000 if buyers purchase newly constructed real estate.
What does this mean for private real estate sale and for sale by owner sales in Australia? Not a whole lot but it will spur on first home owners to consider getting into the real estate market. With interest rates and property prices on the fall means there is no better time for first home owners to enter the real estate market.
Lets just hope that job uncertainty doesn’t scare away first home owners from entering the market.
Comments
Where do first home owner buyers get there deposit from? This was an issue before the financial crisis but now it is even bigger. With uncertainty regarding which way property prices will go banks won’t lend money unless you have at least a 15% deposit and most young people just don’t have this cash.
Gavin R
27.10.08
7:17 am
There is an issue with the first home owners grant – only buyers who signed contracts from 14th of October 2008 and till 30 of June 2009 are to get the boosted FHOG. So some people think that it’s no big deal if they change the date of the contract to get the increased grant, when in fact that is a criminal offense. I have published an article about it in Home I Own (I hope it’s OK if I post the link here, if not – just moderate it)
http://www.homeiown.com/is-changing-my-contract-to-get-fhog-increase-a-crime/ So the bottom line is – do not change the contract date just for the sake of the new FHOG, or at least get some advice from a solicitor.
Chris
28.10.08
12:08 am
I wasn’t aware that it ended at June 30th 2009, thanks for the thumbs up. This is a bit weird isn’t it setting a deadline on a grant like that. Usually they just release grants to run indefinitely and then do a review in the future and cancel it.
Trent Piccilo
28.10.08
12:31 pm
I am with Gavin R, it is almost impossible for first home owners to save a deposit.
Rents are the highest they ever have been and are growing at exponential rates. Also with what appears to be a looming recession means wages would not be predicted to grow across the board means there is not a lot left in the weekly budget to save for a house deposit.
The only way around saving for the deposit would be to use the first home owners grant as the deposit. Not sure this is possible.
Good article as well Chris.
Luke Randal
29.10.08
10:51 am
I will think you find Trent, that by setting a time limit on the grant will motivate potential first home owners to act within the next 8 months. This is precisely what the govern’t needs, stimulus in the coming months.
A well thought out plan!
Jenny
29.10.08
2:00 pm
Of course people would try and change the date of the contract it makes it worth it. It is funny how the difference between $7,000 can come down to a few hours making up a day. heheh
T-Bone
29.10.08
8:14 pm