'Bribed to buy': Government cash splash lures homebuyers, but could it send prices crashing?

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As government grants entice people to buy blocks of land in outer suburbs, there are warnings the stimulus could see house prices slump further in markets that have already fallen since 2015.

Marnie Williams and Honor Steinbeck had planned to start looking for a block of land sometime next year, until enticements too good to refuse rapidly accelerated their plans.But some are worried it risks house price slumps and negative equityThe dangled carrots came in the form of $25,000 from the Federal Government and then another $20,000 from the West Australian government.

Real Estate Institute of WA President Damian Collins said there were 1,471 land sales in June, up 289 per cent on May. "What you want to be thinking about is not just the free money you are going to be getting from the government, but also you want to be thinking about 'what is the value of that going to be at the end?'"House sale could bring debtShe wants to sell so she can move back to New Zealand to care for her elderly parents, but said the best offer she'd had so far was $20,000 less than she owed the bank."When we came here [to Australia], I came here with money.

"And now with the government offering this new package we're finding that [buyers are] taking that up. "But there's a couple of observations. The first is that the land prices tend to rise by the amount of those additional incentives, so people need to pay more.

 

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More hysteria from the abc

We can only hope

Is there even any systems in place for anyone to apply for federal grants yet? My understanding, is that Morrison’s scheme was ‘back of an envelope’ stuff. He’s long on promises but short on actual money I wouldn’t be banking on anything he says, until the cash is in your hand

'typical aussie couple' im sure their children will have leave a great legacy in Australia....Marxist gaslighting.

This face is genuinely concerned for you, kids. (he's actually pissed off more supply will hold down prices)

Neither MathiasCormann, JoshFrydenberg or any in the LibLab set up have put forward a plan of any sort to build a productive & sustainable economy with real jobs that afford the standard of living we have borrowed. Instead it all the same captured population ponzi economics

Article needs updating to include the 5% LMI scheme for first home owners announced by gov.

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