We could point fingers at international money, investor exuberance, housing shortfalls etc for Australia's property prices ... but I think the govt has to take some of the flack here.
Firstly the first home buyers grant.
And now the NSW shared equity scheme.(and other similar across other states)
With Shared Equity, the NSW Government lightens the load of a mortgage by contributing up to 40% of the purchase price of a new home and up to 30% towards an existing house. In exchange, the Government holds an equity share in the property – but the home is yours. (Value of home purchased up to $950k in Syd metro)
Yes. As well as allowing participants to pay a deposit of just 2%, Shared Equity means lower repayments on a smaller loan amount, and no need for expensive lender insurance. You won’t pay interest or rent on the Government’s equity share, either.
Single applicants must earn less than $93,200 and joint applicants must have a combined income of less than $124,200.
So I think the CBA home deposit scheme could be a direct result to compete with the two banks who have been given the task of vetting/issuing these subsidised mortgages. Bendigo and Unity banks.
Another classic on news.com.au how easy it is to make money in property @Strawman
My favourite quote is "More impressively, plumbers Jack Gray, 23, and Harry Gray, 22, both from South Wentworthville in Sydney, have done so without help from the Bank of Mum and Dad, although they do still live at home where they pay $100 a week in board."
They never mention what the net asset value is in these articles.
Anyway, property to the moon ???? thank god for the investment law of doubling every 7 years.
Just sold two properties in WA and putting the cash back into my share portfolio....well the amount Mrs Rudyboy allows!
One of the properties we had for 15 years in a fabulous location. bought $450k, sold $550k, negatively geared for 14 years, last tenant was a nightmare.
Lost faith in buy to rent. Old story comes true irrelevant of what you buy....buy low, sell high...oh and don't spend the profits all in one shop.