+ Reply to Thread
Page 1 of 4 123 ... LastLast
Results 1 to 10 of 37
  1. #1
    Join Date
    Oct 2010
    Posts
    12,868
    Thanks
    4,426
    Thanked
    7,857
    Reviews
    2
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts

    Default Thoughts on the government's 5% housing deposit scheme?

    For those who want to know more before commenting:

    https://www.finder.com.au/first-home...deposit-scheme

    What are your thoughts on this scheme? Do you think it will potentially drive prices up, or do you think it's such a small number of people that it will have little to no impact?

    DH and I are planning to buy our first home next year - we *may* be able to take advantage of this scheme, however it would be reliant on us finding the right house at the right time - we want to choose carefully.

    The cap where we live is 700K, which is more than we planned to borrow anyway.

  2. #2
    Join Date
    Feb 2009
    Posts
    19,825
    Thanks
    1,635
    Thanked
    9,376
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 posts
    I think more could be done to help first home buyers. Rather than trying to get them to save, they should look at other things instead. Like good rental records. I think the ability to pay rent on time for a number of years is more important than saving for a deposit.

    I suppose it’s a good thing in a way, and with first home buyers not paying stamp duty in NSW it’s a good incentive, but I think they need to work out how to give priority to the first home buyer rather than investors or it will push prices up.

  3. The Following 2 Users Say Thank You to BigRedV For This Useful Post:

    LoveMyWay (08-11-2019),Rachel3072 (08-11-2019)

  4. #3
    Join Date
    Feb 2008
    Posts
    12,506
    Thanks
    1,714
    Thanked
    1,497
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Considering the fact that you still need to actually get approved through a standard lender, and it's only available to the first 10000 first homme owners that will owner occupiers, I don't think it's going to make much difference in the actual housing market. I suspect it will make more of a difference in local communities where fist home owners that qualify won't be AS stretched in the first few years.

  5. #4
    Join Date
    Feb 2008
    Posts
    12,506
    Thanks
    1,714
    Thanked
    1,497
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Quote Originally Posted by BigRedV View Post
    I think more could be done to help first home buyers. Rather than trying to get them to save, they should look at other things instead. Like good rental records. I think the ability to pay rent on time for a number of years is more important than saving for a deposit.

    I suppose it’s a good thing in a way, and with first home buyers not paying stamp duty in NSW it’s a good incentive, but I think they need to work out how to give priority to the first home buyer rather than investors or it will push prices up.
    It's only available to first home owners that are owner occupiers and paying principal +interest. It also has an income cap on the scheme.

    I do agree that more needs to be done.

  6. #5
    Join Date
    Feb 2009
    Posts
    19,825
    Thanks
    1,635
    Thanked
    9,376
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 posts
    Quote Originally Posted by Izy View Post
    It's only available to first home owners that are owner occupiers and paying principal +interest. It also has an income cap on the scheme.

    I do agree that more needs to be done.
    Yes I read the article. What I meant was, they should somehow prioritise first home buyers over investors when buying/bidding otherwise investors will get it, pushing prices up and again leaving first home buyers out of the market.

  7. The Following User Says Thank You to BigRedV For This Useful Post:

    Izy (09-11-2019)

  8. #6
    Join Date
    Feb 2015
    Posts
    4,931
    Thanks
    6,927
    Thanked
    4,203
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts

    Default Thoughts on the government's 5% housing deposit scheme?

    I don’t know to be honest. Overall I don’t think this program will affect the market, it will help 10,000 people/couples. In the bigger picture, housing affordability is a big problem. Irresponsible lending / borrowing has caused all sorts of issues and should not be encouraged either. It’s a tough issue to tackle and I don’t know what the magic solution is, I suspect there isn’t one. Part of the issue is that there isn’t one housing market. Cities on the east coast have seen huge or at least stable growth so people who borrowed with low deposits there are fine. Other cities (Perth, Darwin) have had big crashes. People who borrowed with small deposits in, for example Darwin and Perth, are now in a world of pain as they can’t refinance as they owe more than their houses are worth or in the very least would need to pay LMI again so they can’t take advantage of the low interests at the moment. They are stuck paying 5% interest and if they sell they are left with a personal loan for the difference. This is the type of situation people should not be encouraged to get into.
    But then how can people who can’t save deposit ever get a house? The interest rates are so low and cost of living so high, it becomes an almost impossible feat to save enough for a 20% deposit.
    For numerous reasons I think stamp duty should be canned for all purchases (or at least all purchases of PPRs). The ACT are doing this.
    Also it’s not just first home buyers that are struggling. People trying to renter the market are often in just as dire situations.
    Last edited by babyno1onboard; 08-11-2019 at 08:38.

  9. The Following User Says Thank You to babyno1onboard For This Useful Post:

    Mod-Wise Enough (08-11-2019)

  10. #7
    Join Date
    Jul 2015
    Posts
    12,571
    Thanks
    8,563
    Thanked
    8,538
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    two things that stand out is it’s limited to 10,000 borrowers. why? not sure how that is supposed to help anyone but a very tiny segment of first home buyers. the income cap is an issue. $100k these days is a pretty average salary, it should be open to all first home buyers.

    the lmi is a joke, we avoided it because my parents went guarantor for our home loan (we’ve since removed them following a valuation of the house) but we only had a 5% deposit. it’s bloody hard these days to get a decent chunk of money behind you, even on a good salary.

  11. #8
    Join Date
    Dec 2005
    Posts
    13,389
    Thanks
    3,962
    Thanked
    4,220
    Reviews
    15
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    I can’t believe it’s limited to only 10,000 people, that hardly seems like a scheme to me.

    Anything to avoid a LMI is good as that’s a killer but I don’t think this is all that’s needed to be done in such a hard market to get into.

  12. #9
    Join Date
    Oct 2010
    Posts
    12,868
    Thanks
    4,426
    Thanked
    7,857
    Reviews
    2
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Quote Originally Posted by turquoisecoast View Post
    the lmi is a joke, we avoided it because my parents went guarantor for our home loan (we’ve since removed them following a valuation of the house) but we only had a 5% deposit. it’s bloody hard these days to get a decent chunk of money behind you, even on a good salary.
    I've just accepted that LMI is a reality for us unfortunately (unless the stars align and we can take up on the scheme). 20% deposit is an unrealistic joke of an amount to expect people to save in a lot of areas of Australia. We'd waste another 5 years paying rent to try and save up 20%. I'm ready to start paying off something that can be ours, and if that means only having 5% deposit then I'm jumping on it.

  13. #10
    Join Date
    Jul 2015
    Posts
    12,571
    Thanks
    8,563
    Thanked
    8,538
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts

    Default Thoughts on the government's 5% housing deposit scheme?

    Quote Originally Posted by Mod-Degrassi View Post
    I've just accepted that LMI is a reality for us unfortunately (unless the stars align and we can take up on the scheme). 20% deposit is an unrealistic joke of an amount to expect people to save in a lot of areas of Australia. We'd waste another 5 years paying rent to try and save up 20%. I'm ready to start paying off something that can be ours, and if that means only having 5% deposit then I'm jumping on it.
    exactly. we saved hard for ages just to scratch together 5%. and being older, we wanted to have kids after we got married. had we waited to buy first then have kids, i don’t know when we would get to buy or how old we’d be by the time we could finally afford to have kids as going down to one salary and me going back and only doing part time hours would’ve added years to the savings effort. not to mention daycare costs draining savings. i’m so grateful we were fortunate enough to have my parents go guarantor for us as it enabled us to buy with the deposit we had and in the area we wanted. if we were buying in our area now, we couldn’t afford it or we’d be mortgaged to the back teeth.

    20% is $100k plus in most capital cities, that’s a lot to try and save up, esp once you’ve had kids and have the associated costs of living, kids daycare costs plus trying to save.


 

Similar Threads

  1. House Deposit...
    By Cinta in forum House & Gardens
    Replies: 32
    Last Post: 28-09-2006, 16:02
  2. My random weird thoughts for the evening.
    By the_queen in forum General Chat
    Replies: 14
    Last Post: 30-04-2006, 12:23
  3. Replies: 15
    Last Post: 13-04-2006, 15:36
  4. What are the thoughts on the Valco Rebel?
    By littlepaz in forum Maternity products
    Replies: 3
    Last Post: 26-03-2006, 11:17

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

ADVERTISEMENT

ADVERTISEMENT

FEATURED SUPPORTER
ProSwimProSwim Rostrevor runs learn to swim classes for children and adults. Lessons are run during the Summer months ...
FORUMS - chatting now ...
TTC December 2019Conception & Fertility General Chat
Christmas presentsGeneral Chat
TTC baby 1 - PCOS + Ovulation inductionNon-IVF fertility assistance
Hi all!Introductions
Naughty November TTC 2019Conception & Fertility General Chat
Horrible Baby Names #3Choosing Baby Names
Clexane - when did you stop?Conception & Fertility General Chat
Tonight we're smashing into...#4Recipes & Lunchbox Ideas