Home loans: sign up or hold off?
As the June 30th deadline for the first-home buyers’ grant bonus approaches, one expert has advised that it might be wise to avoid jumping into the property market.
Although many consumers may have been holding off getting a home loan in the hope that the Reserve Bank would take interest rates lower, yesterday’s (May 5th) decision to keep rates on hold may encourage people to compare home loans quickly in order to take advantage of the grant.
However, AccountantsRus chief executive Adrian Raftery has told the Herald Sun that the grant has pushing house prices upwards over the last few months, meaning that the bonus could be wiped out by an over-valued property.
"You think we would have learnt from the credit crunch. I would rather miss out on $24,000 from the government than to lose $50,000 or $100,000 down the track," he mused.
Instead, he said, buyers should keep stashing money away in federal deposit savings account to build a hefty down payment to put on a property a few years down the line.