Another one to add to the bleeding obvious list.
Government grants (ie, giving other people’s money) to new home owners, amount to $21,000.
Because they have a larger deposit, (sometimes the grant is their only deposit) first home buyers are able to arrange larger loans. Which they are often unable to afford.
The average loan size for first-home buyers has risen by $52,000 – or 23 per cent – in the past two years, raising fears that the much-publicised government incentives for young buyers are artificially inflating the market.
Imagine governments encouraging people to take out home loans they can’t afford. Why, if they’re not careful that could cause some problems, maybe.
In addition, throwing tax payer funds at the housing market causes inflation, so that in many cases the total cost of a new home is more than it would have been if the government had minded its own business, not handed out unecessary grants, and saved my tax dollars for something useful.
Who was it who said the only thing we learn from history is that no one learns anything from history?
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