Low-end house prices 'to fall 10pc' | Property | News.com.au
The odd thing is, I guess for the first time buyer, government grants to encourage you to buy a house shouldn't really make much difference. I mean, while the grants are available, they artificially inflate the price, as everyone knows the government is funding a percentage of your buying power.
When the grants finish, the price should drop and the net cost to the first time buyer who has waited should be about the same.
The drop in price should also encourage investment buyers, which may have the effect of reducing rent (slightly) for those who can't buy.
The only losers are those who buy with a grant and who then need to sell soon after the grants cease. (Oh, and the rest of us who have had their taxes spent on a grant which may not really have helped first home buyers at all.)
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