Thursday, April 23, 2009

No more first homebuyer grant? Banks not coping

Today, the ABC News reported that banks are experiencing delays so long that buyers are missing their settlement dates for the houses. Most of this demand is coming from first homebuyers who today were told that the first homebuyer grant will not continue.

"A combination of factors appears to be to blame for the waiting times, but the frenzy of activity is also focussing attention on the wisdom behind the first homebuyers grant, and there is a growing debate over whether it should be extended."

Personally I think it will be extended. This is just a ploy to keep the Real Estate Market ticking over to the 30th June. If Kevin Rudd made people assume that the grant will not continue, you would see a major slump over the next few months as people take for granted the homebuyers grant.

By saying that it won't be around, he is playing salesman politics appealing to the old sales strategy called "fear of loss". You can expect him to create more demand by reintroducing the homebuyer grant in October or something when the economy free falls. This is not an expert opinion.. just based on what a sly politician would do in Kevin's shoes.

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