FHOG: Parasitic rentseekers demand more from the taxpayer

And then, when the increased grant even further inflates house prices, we can call for it to be raised again, and so on forever:

The residential housing market had changed significantly since 2000 and the $7000 grant was no longer adequate, [mortgage broking company] Loan Market said.

“The economics that drove the original payment are outdated and need to be reviewed as per any government grant,” said the broker’s chief operating officer Dean Rushton on Wednesday.

Fortunately the commenters on the piece have treated the self-interested, sociopathic lobbying by these corrupt parasites with the contempt it deserves.

The FHOG makes housing much less affordable and pushes young Australians further into debt. It should be abolished, not raised.

ELSEWHERE (16/6): Weird, what’s a banker doing questioning negative gearing? I mean, I agree it’s a terrible and destructive policy, but the banks have been profiting handsomely by it. What would make them stand against it? (Since “principle” is hardly a plausible explanation.)

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5 responses to “FHOG: Parasitic rentseekers demand more from the taxpayer

  1. narcoticmusing

    And yet, that view is not shared by most first home buyers trying to get over the stamp duty hurdle. The prices are going up due to many factors and I disagree that a targeted grant program is as damaging as say; negative gearing on existing properties, incentives for foreign purchasing without occupation/tenancy; etc…

  2. I suspect it’s shared by any first home buyers who have any understanding of economics, and can get past the “HEY FREE MONEY” and “NOW I CAN BORROW MORE!” responses to realise “wait a second, the people I’m competing against also have this free money, and they can also borrow more”.

    I agree that negative gearing is also damaging, but it’s not an either/or.

  3. @ narcotimusing The prices are going up due to many factors

    Narco, you are guilding the lilly. Property prices are going up for one reason only which is high population growth policies from successive governments.

    FHOG or no FHOG (FHOG just makes it worse) we will continue to experience high housing prices whilst government imports hundreds of thousands of immigrants into this country every year.

  4. And yet, that view is not shared by most first home buyers trying to get over the stamp duty hurdle.

    It wasn’t shared by me when I was shopping around for mine, but the reason for that (my own stake in it) should be obvious.
    And I was, by definition, flying blind.

    Also, the $25,000 I’d saved up was the only reason I was even in the running (the grant was just sauce).

  5. “Most recent Australian Bureau of Statistics (ABS) data shows the size of an average home loan taken out by a first-time buyers was $285,400.
    Back in June 2000 it was just $137,400″

    wow..

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