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FHOG a 'waste and a distraction'

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Australian Broker | 20 Mar 2012, 04:00 AM Agree 0
A regional bank head has slammed first homebuyer grants, calling them "a waste"
  • Country Broker | 20 Mar 2012, 09:54 AM Agree 0
    How does Johonsan account for all of the first home buyers who are using his bank in Regional Victoria to construct new houses because they will receive a $26,500 Regional Vic Construction grant , we are seeing houses built with solid clients borrowing NOW .
    I find these comments rather confusing to say the least.
  • NoTimeLikeTheFuture | 20 Mar 2012, 10:45 AM Agree 0
    I wonder if Johanson thinks negative gearing is also poor policy which unnaturally drives up the cost of housing?
    Main difference is first home buyers need a place to live. Negative gearers are often high earners who are just in it for the money and the tax break.
  • Wozza | 20 Mar 2012, 11:28 AM Agree 0
    Let Mr Johanson tell all those first home buyers who used the FHOG to get into the market for the first time that it was bad policy. A hand was what they needed and now they have security and equity in a property. Anyone with this short sighted outlook should also have a short future
  • Bullion Baron | 20 Mar 2012, 11:41 AM Agree 0
    @Wozza, if the FHOG wasn't introduced or is now removed then prices will move to accommodate the new spending/borrowing power of the market (e.g. they will fall or wouldn't have risen so much in the first place). The FHOG deposit allows First Home Buyers to leverage into properties that they shouldn't be buying if they can't save the deposit.

    Many first home buyers who leveraged off the First Home Buyers Boost introduced in 2008 (now removed) are now sitting with negative equity despite your claims and security with a large mortgage is only ever a job loss away!
  • Robbo | 21 Mar 2012, 11:08 AM Agree 0
    I'm pretty sure you couldn't use the FHOG for your deposit so in fact it didn't help anyone get into the market. That was the case when I got mine. I used it for a solar hot water system!
  • Aydn O'Neill | 21 Mar 2012, 03:50 PM Agree 0
    If infact the grant was not made available and the housing market had succeeded through economic properity why blame the FHOG for house prices increasing. I really dont understand this gentlemans rationale. House prices will continue to rise in future as will the general cost of living (all because of economic prosperity). You cannot blame this on a small handout for first home buyers.
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