Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

First Home Owner Grant for Existing Dwellings

Notify me of new replies via email
Chris Stevens | 31 Oct 2013, 01:05 PM Agree 0
I appreciate that most of the people who are reading this are investors. Many of you will have personally benefited from the first home owner grant that was previously available for existing dwellings. Many more of you may have children who are looking to follow your lead and get started in the property market but are finding it increasingly difficult given current market conditions.

Please show your support by <a href="" rel="nofollow" target="_blank">signing the online petition to the NSW Government to bring back the first home owner grant</a> for existing dwellings. If you really want to help, please share the link via facebook, twitter, email and good old word of mouth.

Thank you very much.

  • Fred | 26 Nov 2013, 02:23 PM Agree 0

    I suggest you look at the history of what happen with the FHOG scheme before posting items like this.

    The FHOG scheme was originally to offset the cost of GST on a NEW home being built at the time the GST was introduced in 2000 but somehow ended up on ALL properties.

    This resulted in the market being distorted as 1st home buyers sought government assistance of up to $35K (dependant upon state and time). For the first few of years of the scheme, we have a massive bring forward of demand in this space which lead to substantial price increase at the bottom end of the market which eventually flowed through the entire property market. Accordingly we had a so called housing boom prior to the GFC. Problem was we didn't actually build any real properties compared to the demand.

    This shortage of supply is what is now driving and inflating our prices currently.

    So for the government to remove the incentive on existing houses and only allow it on new builds is the correct thing to do. Problem is it took them 12 year to get their original policy idea right and have massively distorted the market in the interim.

    End result is that their change in the original purpose of the FHOG policy has made it harder for 1st home owners to enter the market as the prices have increased beyond where it should have.

Post a reply