Improved FHOG + low Interest rate = Trouble?

I think it'll get messy once the first FHSA are able to be used, that'll potentially pump alot more funds into the real estate market...

Yes good point. Though it won't be for at least 2yrs yet...

With the FHSA - why do you think it will get messy? Sure prices may be inflated, but won't it encourage good savings practices and therefore make the transition into paying a mortgage easier?

Hi Davo,

With the FHSA this will be a nice deposit for home owners who use it. With a larger deposit this can push up the price of property as more money is chasing a similar number of properties. For those who are unlucky enough not to know about the FHSA this will make it harder to purchase as prices are pushed further upwards.

Banks will probably want to lend more with a larger deposit as well.

Cheers,

Dan

I suppose it depends how many realise the 2 years 2 days idea, and how many take advantage of the FHSA this year, i'm just wondering if there will be a real flood of cashed up FHSA owners all at one point, rather than spread out over a few years.

Cheers,
David

In two years time I'm sure the media and real estate agents looking to push the sales pitch of "property is about to boom so you should buy now before all the FHSA holders hit the market" will make sure that those that didn't realise will be informed...

hey guys - just with the FHSA. I was under the impression that you could only take the money out after four years of opening it.

could someone tell me the official rules with these? fido also says you need to be saving for four years.

"FIDO"

Also, could I get an opinions on interest rates home loans for the next five years? (let me know if this is a thread hijack) =)

That's my understanding as well
Here is some more info
First Home Buyer Guide - Tips and Advice

Well that's a big guess from anyone....
Given the current environment, however, I've elected to fix some of my loans for 3 yrs and have got a good rate with Westpac of 5.89% (thanks Rolf!) which I'm happy with. Still investigating others as we speak and may refinance, depending on what's on offer. Given that the majors are already lifting their fixed rates, I'm figuring it can't get much better for the next 24-36mths with fixed rates under 6%. Then again, none of us can accurately predict. It's about working out what you're comfortable with and planning your cashflow for the inevitability of IR's over the next 5 yrs. As long as you aren't over-extending yourself and relying on these current low rates, then you should be fine. Always allow a buffer of 2% on top of what you're paying (though some would advocate a larger buffer given the long term of 5yrs) and be certain that you've accounted for all costs when considering your purchases.