Browse Forums General Discussion 1 Jul 06, 2013 4:08 pm Obviously the end of the First Home Owners Grant is going to have a deflationary impact across the entire real estate industry - but to what extent? Beyond simply shaving $7,000 off the sale price of properties across the board, I would think it reasonable to expect that there will simply be a void of buyers in the period directly following the end of the grant - and the drop in values will be compounded by an across-board lack of demand. I would be keen to hear some informed opinions on this. Thanks in advance. Re: Impact of the end of FHOG in Victoria? 2Jul 06, 2013 9:47 pm As it seems there is, so far, informed opinion, I might let rip with some barely informed opinion, kick start for those more informed on the sidelines. Thoughts, not edicts. If I believe the spin, the new conditions were implemented to steer new homebuyers towards just that, new build houses. By definition this theoretically is intended to boost work for builders. Win/win? OTOH not being able to buy an existing house, as noted by OP, and if read him properly, means lower house prices for pre-built houses. I don't know if the market reflects this. A new build takes a while, maybe more opportunity to save in that time, might balance out. Building from scratch may have benefits. I don't know if this is still the case, but I bought my land first, and built a little later. I think that meant less or no Stamp Duty on the house. Maybe not the case if you buy House & Land Package though . When buying an existing house, there are the vapourising costs. Stamp Duty, Conveyancing, Legal and Real Estate Commission costs. If the sellers have paid big $$ for advertising, that will be lumped into their sale price. To me, that appears to be "lost" money, and likely to exceed the FHOG. On top of that, it is like a used car, some things might go wrong, and if past the warranty time, the new owner is up for costs. That para from someone who is about to put their own house on the market The most vocal opponents, from what little I have read, has been the spin from Real Estate Institute of Victoria. Obvious to me at least, that these are the ones who are likely to be most affected by the new system. Even at a low 2% commission, on a $400,000 house, if my math is right, $8,000 goes to the Real Estate Agent. Actual opinion.... Personally, I would prefer a new, warranted, minimum 6-Star rated house, designed for the best aspect to take advantage of solar gains, than existing, used, less optimally designed places. Kick-Started, please feel free to correct my most minimally informed thoughts. Off Topic PS pet peeve .... Developers never seem to design sub-divisions to properly enable the best siting of houses. Amazing considering they start with a blank sheet. Maybe a regulation is required here? Re: Impact of the end of FHOG in Victoria? 3Jul 06, 2013 10:46 pm Some prefer to buy in built up areas where land a not available or very scarce. I would have love to build a house in the area i bought in originally, but land just wasn't available. There were 2 blocks on offer, supply vs demand = $$$. In melbourne, most land developments are 10,20,30+kms from the cbd, for some its just not viable living in these areas due to work, lifestyle,etc. For others it may suit that family looking to build there dream house in an upcoming and affordable area. Depends on whats important to you. On the other hand, dont really think solar orientation was big when houses were getting built 10-20 years ago, my property has main living and bedrooms on the south-east side. Bloody cold in winter, bloody hot in summer! I bet you all Ruddy will bring back the grant (or double it) just before the next election Never argue with an idiot. They will only bring you down to their level and beat you with experience. George Carlin Re: Impact of the end of FHOG in Victoria? 5Jul 10, 2013 10:00 am We are first home owners, or will be soon. We decided to build instead of buy around the start of the year. The grant only applying to new builds would have made that decision quicker for us. We do live regionally though, and have the benefit of local land releases being closer to the school our kids already attend, and closer to town and work. That plus the efficiencies we can build into a new house, ie double glazing, north living areas etc, makes it a no brainer. I haven't noticed the entry level house prices drop here yet but surely it's just a matter of time? Minimum overhang into gutter must be 50mm, turn down tool should not split the sheet. it seems wrong tool for the profile was used, the flashing cannot slope back. Rib… 2 2080 Electrical just got back to me and said the most they can provide is a single power point on the Bedroom 1 side of that wall. After handover, your towel rail installer… 2 3802 |