Comments on: First home owners grant inflates housing prices

By: Andrew

Andrew — Thu, 01 Jan 1970 10:00:00 +0000

Both the Rudd and Howard governments have had a choice between two constituencies; those who are invested in the bubble and those who are not. Clearly prices falling is in the interests of everyone waiting to be able to afford a house. If you ‘own a house’, which is our quaint term for owning a mortgage which includes a contractual agreement to use the house under certain circumstances, then falling prices mean negative equity. If you are a bank, that means you can’t pretend you have a whole lot of assets you don’t really have. All this is bad for the bubble investors and the Government has decided their pain is more politically damaging than the pain of those waiting for prices to drop. But since the number of people locked out of the market increases every year, that will change. Personally, I think people should pay for their own investment decisions.

By: Paul of the Central Highlands

Paul of the Central Highlands — Thu, 01 Jan 1970 10:00:00 +0000

Not that it would change your POV on the grant, but wasn’t the first home owners grant scheme set up originally by Gough Whitlam?

By: gARy joHnSOn

gARy joHnSOn — Thu, 01 Jan 1970 10:00:00 +0000

adam i said it before but you are da bright light in da dark room. i suspect da figures you quoted were supplied by da various realestate self-interest groups, so they are probably well under quoted.