“Western Australian government unveils new $20,000 cash grant to anyone building a new
home – and it doesn’t matter if it’s an investment property”.
Yes, even billionaire foreign investors can now get $20,000 in West Australian taxpayer
money to build a new home.
“Thousands rush to sign up for Australian government's $25,000 HomeBuilder grants”.
This federal grant is a little bit harder to get.
You have to be an Australian citizen, and you can’t earn more than $125,000, or $200,000
if you’re a couple.
It has to be your principal place of residence and cannot exceed $750,000 in value.
Or you can substantially renovate your existing home, as long as the property isn’t worth
more than $1.5 million.
“Queensland Government announces raft of new grants for first home owners, small business,
seniors”.
Yes, individual states and territories also have their own housing grants that are available
on top of the federally funded HomeBuilder grant.
With all of theses recent grants, it looks like its great news for home buyers…
or is it?
Well, the problem with housing grants, is that they don’t work.
Well, insofar as they don’t help the people they’re supposed to be helping.
Grants exist not for you and me to help us afford a new home.
They exist to prop up a failing housing market.
Whatever amount you receive in grants, you can be rest assured that it’ll be tacked
directly onto the sale price of the house that you wish to buy.
Here’s a new house in a world where there are no housing grants.
It’s selling for $339,000.
Here’s the same house after $60,000 worth of grants are made available.
See that!
It went up to $399,000!
Wow, by receiving $60,000 in grants, I saved absolutely nothing!
The real estate agent got some extra money.
The developer got some extra money.
But the poor taxpayer had to pay for it all, and as the buyer, I didn’t save a damn cent!
You think I’m making all this up, don’t you?
Well, there’s plenty of evidence to suggest that I’m not.
“Proof government grants inflate house prices”.
If it wasn’t already obvious, that’s the real reason why any of these housing grants
are being made available.
In Western Australia for example, there’s the $25,000 HomeBuilder grant; the $20,000
Building Bonus; $5,000 Stamp duty concession; and another $10,000 if you’re a first home
buyer.
That’s a total of $60,000.
That’ll help you out a lot, won’t it?
Well, as you’ve probably already gathered by now, developers have been caught inflating
the sale prices of house and land packages.
Here’s a house in WA that was selling for $379,000.
After all the grants became available, suddenly the price jumped by $30,000 to $409,000.
If you read through the ad though, somebody forgot to update the original description
where it said, “It's not often an opportunity arises where you can purchase a full turn-key
3-bedroom 2-bathroom home, in one of Perth's best-performing suburbs for only $349,000”,
which is $60,000 less than the asking price!
So it looks like the price may have risen by $30,000 or $60,000 depending on which part
of the ad you look at.
Of course, they cover themselves by stating, “Pricing and availability are correct as
at the date of publication and are subject to change without notice”.
For your interest, I’ve placed a link to this article in the description below.
I mean, obviously, all of this house price inflation is expected.
Imagine a supermarket that sells bananas for $5 a kilogram.
The government in their latest health campaign decide to encourage people to eat healthily
by offering a $5 per kilogram rebate to all customers who purchase bananas.
Do you think the supermarkets will just accept that people are now essentially getting bananas
for free?
No, they’ll bump up the price to $10! Unsurprisingly, they want a piece of the rebate as well.
If people start accusing them of profiteering, they’ll just put a friendly notice up in
front of the banana stand.
“Due to unforeseen production issues, the price of bananas has unfortunately gone up.
But don’t worry!
All our loyal customers are now eligible for the new Government $5 Banana Rebate.”
So obviously, if you offer people money to buy houses, they’ll rush out and buy them,
but don’t kid yourself into believing that this somehow makes houses cheaper.
It doesn’t.
The grants are essentially just tacked on in their entirety to the sale price of the
house.
But not only do we have grants nowadays in the vain attempt to keep this market from
crashing, you can also get “cheap” mortgages, and I use the term “cheap” very loosely.
“First Home Loan Deposit Scheme: 10,000 more places made available for first home
buyers”.
If you haven’t heard of this brilliant idea already, basically it allows people to get
a mortgage for only a 5% deposit.
Get into massive debt earlier than ever!
Again, the government claim to be supporting first home buyers, but I think we all know
the real reason (as I mentioned earlier) — to prop up an already overpriced housing market!
Yes, now that we’ve all got used to high house prices in Australia, the government
certainly do not want house prices to fall.
That would impact the net wealth of their rich mates!
So obviously, the entire property market in Australia is just one big house of cards being
propped up by taxpayer money.
I don’t mean to pick on Scott Morrison here.
Both sides of politics are equally guilty!
Whoever is in government, this house of cards that we call the property market, is being
propped up courtesy of the taxpayer.
2035
Loan-to-Own!
NEW no-deposit, 70-year loans for all Australian residents 18 years or older!
Yes, from July 2035, you can now Loan-to-Own courtesy of the Australian Government!
Just go about your normal life working hard as you normally would, and you’ll end up
owning your own home by the time you’re 88 years-old!
Absolutely no deposit required!
DISCLAIMER: For Loan-to-Own recipients who do not reach 88 years of age, their home will
be repossessed by the Australian Government in accordance with the Housing Rights Act
2035, s 15(1)(b).