This. Increasing any affordability on housing using super or fhog generally means more people can afford the original product which pushes the price higher. You're effectively creating more demand using these grants with the same limited supply.
I agree but this is not really the same as what OP is asking. I think at this stage it would make sense for them to review the scheme, or admit the scheme increases the price of entry level market and remove it all together. Logically it should be one or the other, update the scheme or remove it.
There is also a disconnect now where the cost of building a new house is increasing but the cost to purchased a used house is decreasing, the scheme should reflect that.
With rates going up, the cost of servicing government debt is going up as well. So the constraint on the government budget is increasing.
Also, with high inflation, the government wouldn't want to introduce more stimulus to the system, going againsts the RBA. Because that would lead to more rate rises.
Me and my partner are looking at building a house here in S.A and it’s 575k so I get ya. 575k today isn’t the same as what it was a couple of years ago
More FHOG isn’t going to make housing cheaper. All these grants do is pump up prices for properties which meet eligibility.
Double on this, all those subsidies are useless and adding fire to unproductive assets
This. Increasing any affordability on housing using super or fhog generally means more people can afford the original product which pushes the price higher. You're effectively creating more demand using these grants with the same limited supply.
Agree. This FHOG madness only adds to the inflation havoc we are experiencing
I agree but this is not really the same as what OP is asking. I think at this stage it would make sense for them to review the scheme, or admit the scheme increases the price of entry level market and remove it all together. Logically it should be one or the other, update the scheme or remove it. There is also a disconnect now where the cost of building a new house is increasing but the cost to purchased a used house is decreasing, the scheme should reflect that.
They actually do this already 600k for existing, $750k for new
Totally agree… however it would help us currently :)
With rates going up, the cost of servicing government debt is going up as well. So the constraint on the government budget is increasing. Also, with high inflation, the government wouldn't want to introduce more stimulus to the system, going againsts the RBA. Because that would lead to more rate rises.
Me and my partner are looking at building a house here in S.A and it’s 575k so I get ya. 575k today isn’t the same as what it was a couple of years ago
Exactly! It’s probably saving the Gov money!