NKSK version 2

http://business.theage.com.au/busine...0423-ag1j.html

ASHO

Why hooray?

bcworld

Because the country can't afford it and it does nothing to address the issue of home affordability.

bourbon-biscuit

My money's still on that they'll extend. The article says he 'suggested' it, which is in line with predictions that it'll be extended last minute but they'll try to make it look otherwise to continue to prop the lower end of the market.

IvanM

You maybe right. Quite often rumours of a big cut are made so that a smaller cut on the day goes unnoticed. Then on the day the big cut does not arrive and that is all the media talk about.

IvanM

I agree. All it does is multiply the borrowing capability of the buyer by more than the amount of the grant.

The main thing is that local taxes and and charges are adjusted to make building in NSW attractive again. Maybe a large land release plan. I'll eat my nob if they put in the needed public transport as well.

jad n rich

It was in place for years before the recent double treble bonus.

So when it ends, is that ends totally or reverts back to how it was before?

Its been 7 14 and 21 K in our time here, but most of time here there has been a FHOG.

Is the reduced/nil stamp duty under 500K also going down the rudd pan or is that staying.

IvanM

That is state based. Can the state budgets handle it?

ABCDiamond

The actual wording was:
This has been revised to mean:
and further revised for this headline to be:
From the original wording. it seems that the extra money 'may' in fact end in June, or may not, and then it will revert back to what it was, when the extra boost does in fact end.

Sammy T

Some of them can't already, Tas only has a concession towards stamp duty for properties belown $250k, whereas there are a couple of states which offer very generous stamp duty concessions. It very much depends on which state you live in as to how much of the pot is dished out to them and that's not always fair in a per head fashion either.
And of course some states may just be better at balancing their books

Sam

IvanM

Good reporting about nothing isn't it. We'll see a lot more guessing non stories before the budget.

sj oldfield

Bit is has helped some of the first time home buyers get into the property markets, when previously they couldnt have done

IvanM

It helped at first until the homes went up much more than the grant due the capability to borrow more. The law of unintended consequences.

quoll

How long some of them will stay in the property market is another matter unfortunately. When they discover that they are in significant negative equity with precarious employment prospects and soaring interest rates (the most likely scenario) some of them will rue the day they thought they should jump on the home owner ladder.

ABCDiamond

But then the other way things could go is:

Even if Unemployment was to hit 10%, it still means that 90% will be OK.