What will $950 do for you?

[WindeX]

"It means 8.7 million workers earning $100,000 or less will receive a lump sum payment of $950 each from April."

http://business.theage.com.au/business/govt-unveils-42b-stimulus-20090203-7w6v.html?page=2

I assume that many of us are on under 100k so will be expecting this bonus, what will you be doing with it?

 

[Dean]

Cant complain with that!
most likely it will be spent on the car..

 

[WindeX]

Yeah its also 25 slabs of beer which sounds awesome. I would love to buy a trailer load of beer.

 

[to4garret]

fix my friggin cam gear and thermostat housing

 

[andy's-galant]

u reckon it stand for people on workers compensation? im injured from work

 

[CLuTZ]

Do you have to be an Australian CITIZEN? I'm only a permanent resident!

I don't know why they don't just cut taxes!! Would make more sense to me!!

 

[ziad]

hmm 950... i could get tires or some track rims.... or a bbklite (need more money for that)

i think i know what the finance minister says to the above

 

[OFFON-4]

Do you have to be an Australian CITIZEN? I'm only a permanent resident!

I don't know why they don't just cut taxes!! Would make more sense to me!!

That will be next on the cards Dre!

In order to stimulate the economy it will take further tax cuts and as we saw today the RBA announced the cash rate has been reduced a further 100 basis point leaving the cash rate at 3.25% which is the lowest its been in nearly a century i think

Interesting times!

 

[CLuTZ]

That will be next on the cards Dre!

In order to stimulate the economy it will take further tax cuts and as we saw today the RBA announced the cash rate has been reduced a further 100 basis point leaving the cash rate at 3.25% which is the lowest its been in nearly a century i think

Interesting times!

Doesnt make it any easier to get a loan though! Its never been harder! I read somewhere that some institutions are requiring a 20% deposit on home loans? WTF!!

 

[Dean]

by reducing the super rate from 9% to something lower, this will mean we have more cash in our hands each week, rather than being forced to put it away to funds which are dying anyway.
Super has been affected alot because of the recent economic crisis, and peoples funds are dropping lower and lower.. why doesnt the government deviate everyone's cash going there and keep it in their pockets while times are tough? makes sense to me anyway.

 

[Missile]

Doesnt make it any easier to get a loan though! Its never been harder! I read somewhere that some institutions are requiring a 20% deposit on home loans? WTF!!

Poor arse lenders... Basically any lender will allow you to borrow 80% of the value of the property (hence a 20% deposit) within their own means. Most lenders will allow you to borrow more (the major lenders up to around 93% of the value of the property), but then you start to pay mortgage insurance for the additional amount loaned. The mortgage insurance does not protect the borrower from faulting on payments, it only benefit the lender if the borrower defaults on their loan.

Hence its not necessarily a bad thing (only loaning 80% of value of property). 80% loans are a hell of a lot safer in terms of the borrower making the repayments (no mortgage insurance, lower repayments). Remember there are a bucket load of people who are now defaulting on their loans purely because the lenders allowed them to borrow outside of their means. With house prices dropping (in some areas), the banks are now stuck with a house valued at less than the loaned amount; hence the beginning of the financial crisis...

Sucks to be a first home buyer/builder, but there are $14k/$21k grants to help...

P.S. I will spend half of my money on booze and hookers... then I will just waste the other half...

 

[evopwr]

imo theres no better time to be a first home buyer.

as missile mentioned, $14k given to all 1st home buyers, till the end of the financial year tho...

 

[OFFON-4]

80% provided that the value of the property either maintains/incrwases its value

Big issue is that majority of properties are begining to retract in value due to massive property booms in each respective state between 2004/2007, and it appears that it is a continuing trend which could see right through 2009

Therefore 80% isnt realy safe anymore considering QLD/NSW and WA experienced drop of of up to 30%

Thats why the market is tight and people are keeping there hands in there pockets unless they have considerably large deposits

2009 will be interesting, however if you are looking at purchasing and more of a long term thing, now is the time to buy but proceed with caution and allow room for the unexpected like we saw in 2008 where interest rates went through the roof

 

[Dean]

imo theres no better time to be a first home buyer.

as missile mentioned, $14k given to all 1st home buyers, till the end of the financial year tho...

Thats true,
although to gain the bonus you can't live in it for 12months.
So if you are considering buying in order to rent out, based on an average house price of $350,000 in most cases it will actually work out cheaper to rent it out and not get the first home buyers grant. Just a tip to be careful of, make sure you do your calculations properly before jumping.
As a side note - the bonus is $21,000 for those who build their first house from scratch.

 

[WindeX]

Well the way I see it is that with that kind of grant you should be able to pick up a house with a bit of saving. It might not be in the area you want or with 5 bedrooms, 3 bathrooms, a pool and a tennis court. But if you want all those things you should rent a place as that is going to be easier/cheaper.

That said I am retarded with my cash.

 

[Missile]

Thats true,
although to gain the bonus you can't live in it for 12months.
So if you are considering buying in order to rent out, based on an average house price of $350,000 in most cases it will actually work out cheaper to rent it out and not get the first home buyers grant. Just a tip to be careful of, make sure you do your calculations properly before jumping.
As a side note - the bonus is $21,000 for those who build their first house from scratch.

Huh...

$14k bonus is for all first home buyers, You need to live in it for 6months to comply (you will be paid the $14k before that time is up, but they will chase you up if you change your address or similar). You can rent the house out for up to 12 months before moving in to the house for the 6 month period...

You are also legible for the $21k if you buy an established house which has not been occupied

So to add, the $14k or $21k can actually go towards the deposit on the loan, all of a sudden that 20% deposit isnt looking as large...

P.S. I dont know of anywhere in WA that has dropped 30% in value

 

[Dean]

my bad, editing myself...

Thats true,
although to gain the bonus you MUST live in it for 12months.

and in actual fact we're both wrong there Tim, to be eligible, the house must be your primary place of residence for a continuous period of six months, within 12 months of settlement or construction.

What is should have said is that it cannot be rented out for a 12month period. Also what i was saying is that although the its a great amount towards the deposit, in some cases it wont actually work out better.

 

[mattrat]

950 will be spent in melbourne in april, gives me more money to spend on the vr4 now

 

[Marc]

Rollcage for the lancer

 

[glengsr]

Unfortunately mine will probably go off the credit card

Then again a 4G61T sound might good....