Property Insiders: Watch out for the First Home Buyers

It's quite likely that the number of First Home Buyers (FHB) in the market will soon reach the highest level since the Rudd stimulus over a decade. At that time it was part of the Government’s package to stave off a recession in Australia during the GFC. This time round the FHB incentive was a political promise made during the election when the market was property was very different. First homebuyer numbers had already increased significantly over the last few months and when the Federal Government’s First Home Loan Deposit Scheme comes in to play in January it will be a game of Lotto restricted to the 10,000 lucky families. If history repeats itself these FHB’s will push up values in certain locations creating an Established Homeowner Bonus for lucky vendors. Then there are those who suggest that this election promise to rescue FHBs will just commit them to long term financial imprisonment as the Government props up the Australian property Ponzi scheme. To get a better understanding of what’s going on let’s have a chat with Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au.