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zaph

housing stimulus through the ages

15 posts in this topic

i posted this in another forum so i must give credit to myself

we all know about the fhog and then the boost. but what about other govt housing stimulus, or assistance that has been provided in australia over the years?

i was just talking to mum who bought her first house in 73. cost 13500 (h+l). the bank would only lend 9k and they got a 2nd mortgage through a govt scheme of 1500, with low interest. so a form of govt assistance.

i thought some here may be able to comment on what their parents got in stimulus

IF it is really necessary to stimulate then a cheap govt loan is better bang for the govt - they get something back in return.

btw - the place trippled in 6 years to 39500. outer se melbourne.

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Back in the fifties and sixties public servants got free rent in Canberra. I know you'll all agree that this scheme should be reinstated immediately.

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I can't speak with any authority, and my memory is not real reliable about this, but when I purchased a home in 1980, I think we received $1000.00 (a kind of first home owners grant), which we could put to furniture or anything to do with the house. I think we purchased the bore pump with it.

We didn't get a baby bonus.

And the bank would not provide 100% of the loan.

I had to ask my dad for about $5000 as a deposit. Thankfully he had the money at the time.

I do know that some returned servicemen and women returning from Vietnam were provided with low interest loans to enter into a home. Around 5% interest rate if my memory serves me correctly. My initial interest rate was around 8%, but it actually went up to 15% at one point - I think that was in the 90's.

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I do know that some returned servicemen and women returning from Vietnam were provided with low interest loans to enter into a home. Around 5% interest rate if my memory serves me correctly.

I got that. It was for signing on again after your intial 6 year hitch. 25K loan. I was 10 when Saigon fell. I believe the 'Nam boys just got it for services rendered without signing on again since many were conscripts.

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I got that. It was for signing on again after your intial 6 year hitch. 25K loan. I was 10 when Saigon fell. I believe the 'Nam boys just got it for services rendered without signing on again since many were conscripts.

Thanks TP.

I just remember a couple of older mates were eligible.

We were envious being younger at the time, of their terms, but then we didn't have to go to Vietnam, did we!!

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I got that. It was for signing on again after your intial 6 year hitch. 25K loan. I was 10 when Saigon fell. I believe the 'Nam boys just got it for services rendered without signing on again since many were conscripts.

that would have covered the whole purchase price of median house, no?

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It was 1990 when I qualified so about 30%.

ok. pretty decent still especially if the interest rate was only 5%, when commercially rates were double digits.

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It was 1990 when I qualified so about 30%.

So they'd have to give $120k plus to match that sort of deal now.

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Don't give them ideas

Well,

a: They aren't that generous,

b: You'd actually have to serve to get it, so the numbers would be too small to hace an effect,

c: I reckon anybody who's had frontline service has probably earned it, or better.

And thinking about it more, because prices have doubled relative to wages, it would have to be even higher than 30% to be as generous, and to bring mortgage payments down to an equivalent percentage of income that a 30% grant would have 20 years ago.

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Well,

a: They aren't that generous,

b: You'd actually have to serve to get it, so the numbers would be too small to hace an effect,

c: I reckon anybody who's had frontline service has probably earned it, or better.

And thinking about it more, because prices have doubled relative to wages, it would have to be even higher than 30% to be as generous, and to bring mortgage payments down to an equivalent percentage of income that a 30% grant would have 20 years ago.

Sorry, I misread your point - I took it as a general grant of $120K, not defence only. Hence my concern...

I'd actually be OK with a defence-only FHOB of $120K, infact even higher. To be funded by increased CGT on property and restricting NG.

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Well, a $50-60k FHG is what it would take to get the market moving for a little while again, but then they'd have to up it again, and so on.

If they really want to avoid a crash, they've got to scrap the handouts, and get some good old wage inflation going, 10% a year sort of thing, so that they can catch up with prices 70's style. I don't see this happening given the weakness of unions, and the total opposition to wage inflation from just about every vested interest, who want to have their cake & eat it.

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Well, a $50-60k FHG is what it would take to get the market moving for a little while again, but then they'd have to up it again, and so on.

TBH if I were to be tempted by a FHOG-type bribe it would need to be at least $50-60k+ to get me interested. It is hard to find a decent block of land in Victoria below that sort of figure (and then actually put a house on it).

It would be hard to knock back a $120k bribe (on todays' prices), though I can't see it happening.

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