Should i cash in the goverment grant?
propertyman | Aug 27, 2009 | Comments 0
With the deadline approaching fast for the government grants of $14,000 and $21,000 many people are frantic trying to get in before the money is gone !!
Australian goverment grants for Housing
& Property
The Federal Government boost to the first-home owner grant will halve on October 1 and disappear at the end of the year, potentially undermining buoyant prices at the lower end of the housing market.
- Its time to pause take a breather and see if its worth it .
- Is the goverment grant really going to get you a good house at a good deal ?
- Will it be worthwhile waiting to find the house you want and forego the grant ?
- How stable and reliable is your current situation to repay the mortgage
- Is the Interest rates that is definitely going to rise in the not so distant future already factored in
Goverment grants may go, but there is also the chance that new grants in some other form might be introduced. “Many people have bought recently thanks to low rates and the first-home owner grant and some will be in trouble when rates rise,” says Martin North, the financial services director with Fujitsu Australia, which issues a monthly report on mortgage stress.
AUSTRALIAN GOVERMENT GRANTS
The worst-case scenario for recent homebuyers is that some will end up with negative equity – owing more than their property is worth – and be forced to sell into a weak market.
Financial markets expect the Reserve Bank of Australia to lift its official cash rate by 1.5 to 2 percentage points over the next 12 to 18 months, with the first hike expected later this year. Big four lender Commonwealth Bank of Australia has suggested it may move regardless of what the RBA does, in which case other lenders would be likely to follow
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Filed Under: Australia • bank rates • For sale • home loans • home rates • loan rate • mortgage • Mortgage rates • Property sector • Real Estate
