Additional Deposit for First Home Buyers Queensland

• 

  EightImmortals on 12/09/2018 - 08:50

  +2

  Can you tell us who the company is so we can check it out?
  I doubt they would double you deposit without factoring that in (plus interest) somewhere down the line. Someone here should know how it works I'll wager.

  • 

    wuds on 13/09/2018 - 08:33

    It's called peak property alliance. There are bunch of other companies who offer the same

• 

  lubos on 12/09/2018 - 09:45

  +10

  So they will "double" your first home buyer grant only if you buy the house from them? What does it tell you?

  They are not doubling anything and they are not helping first home buyers. It's an incentive for stupid to buy (overpriced) house from them.

  • 

    geech on 12/09/2018 - 10:35

    It sounds exactly like they'll double your first home buyer grant. If they add $15,000 to your deposit, that is immensely more helpful for someone with a low deposit than taking $15,000 off the total build price.

    I don't see how a private developer/home builder adding cash to buyers has any different effect than the government doing it.

    • 

      HighAndDry on 12/09/2018 - 10:50

      that is immensely more helpful for someone with a low deposit than taking $15,000 off the total build price.

      Depending on your definition of "more helpful". There's a reason property purchases generally require 5% or 10% deposit - it's to stop people (possibly like OP) from buying properties they can't afford. Knowing me, you're probably wondering why I care - and I don't, not really - if people want to dig themselves into a hole, that's on them.

      But don't pretend this is some altruistic move on part of the sellers - I have zero support for them either: They want buyers to buy properties that are more expensive that they could otherwise afford. That's all this is designed to do.

      • 

        geech on 12/09/2018 - 11:21

        +1

        Oh, I don't think for a minute the people offering this are doing it for anything more than to increase business. At the same time though, I think it's a bit rich to get outraged and jump on them and say they're gouging people (Not that you did).

        Granted, it might get some people into the market that can't afford to service their loan - however I'd like to think that there are a number of people that could take up these kinds of offers and get into a house sooner (or pay less in LMI) than without the offer. For the record, I'm personally not a huge fan of either the first home buyers grant - or promotions like these as I agree they artificially inflate the market - but I do acknowledge they can help people get over the line when it comes to paying a bank every month instead of paying a landlord.

      • 

        HighAndDry on 12/09/2018 - 11:30

        +4

        @geech:

        but I do acknowledge they can help people get over the line when it comes to paying a bank every month instead of paying a landlord.

        ARGH. Nothing against you personally (and I'm not even sure you're making the same fallacy, you might not actually be), but this annoys the bejezus outta me. We've somehow, as a society, put property ownership on this pedestal like it's the Holy Grail. And you see it in. every. single. property. thread. It's infuriating, because it's plainly not true.

        There are, or at least were before this whole craze of "Omg everyone NEEDS to own property!" a solid debate on the break-even point when owning a property is worth it over renting, in terms of loan service costs, maintenance costs, lack of flexibility, risk of market fluctuations, etc.

      • 

        geech on 12/09/2018 - 11:55

        +1

        @HighAndDry:

        Sorry, it was supposed to be a sarcastic tongue in cheek comment, which is why I said "paying a bank instead of landlord" - as opposed to most people thinking they own their home. I completely agree with you that we've reached this ridiculous point where everyone feels not only that they need to own a property, but that they're also entitled to and that it's everyone else's fault that they don't

      • 

        wuds on 13/09/2018 - 08:55

        +1

        @geech:

        If I am to pay the similar amount what I am paying as a renter wouldn't it be better to have my own property. At least it will add value on capital over the time.

        I agree that these incentives will allow you to go for higher property values but ine should be stupid to buy things that they cannot afford.

        I am still on a dilemma to build a property on buy something in the market

    • 

      lubos on 12/09/2018 - 11:23

      I don't see how a private developer/home builder adding cash to buyers has any different effect than the government doing it.

      Government gives you free money. Private developer will add that money on top of your purchase price.

      Lenders don't blindly lend you money just because you have amassed 20% deposit. They also want to see property you are buying is actually worth what you are paying which wouldn't be the case here.

  • 

    wuds on 13/09/2018 - 08:51

    The issue is these guys are only a third party. They are not the builder nor the mortgage broker. They say they will help us to find a house and land package in an area we like and do project management.

    This would definitely sounds like jacking up prices as the builder needs to involve costing for a third party in addition to that 15 grand

    • 

      lubos on 13/09/2018 - 09:17

      So they are earning a commission for finding buyers. They will pay you back portion of their commission and keep the rest.

      It will be cheaper to go directly to builder and ask them for good discount since they don't have to pay any commission to some agency.

• 

  HighAndDry on 12/09/2018 - 10:07

  -1

  They say they will double my first home buyer grant from the government

  They might phrase it like that, but they're just offering to give you a $15,000 rebate on whatever price you pay them. They do this because 1. it's already factored into the price they're going to charge you, 2. it makes you feel better (yay free money), 3. they get to prop up property prices in QLD (look we're still selling them for $X), and 4. this is all because no one is buying property in QLD anymore.

  ---

  Edit: Oh, and as mentioned above: 5. So you can pay a price you would otherwise not be able to afford.

  • 

    wuds on 13/09/2018 - 08:39

    I totally agree with you with all the points. It think these guys are targetting people who doesn't have money for a deposit which enables them 30,000 deposit instantly.

• 

  tsunamisurfer on 12/09/2018 - 10:50

  Be careful of these because, as mentioned above, the builders will either reduce some features/ components or jack up the price.

  $15k is not hard to factor into for a $250k build.

  This is a clever gimmick but good if you can see true value.

  • 

    wuds on 13/09/2018 - 08:43

    +1

    The issue here is these guys are not the builders or even the mortgage broker. I called up and asked what service they provide. What they basically do is find you a house and land package and get a price from the builder. They quote they do project management but not sure what that is.

    To allow 15,000 they must earn substantial money out of the deal

• 

  Donaldhump on 12/09/2018 - 12:21

  +1

  Maybe it sounds like they add 15k the purchase price, but give you 15k towards it.

  for example

  normal = 250k, deposit = 25k, LVR=90%
  this = 265k, deposit = 40k, LVR=~85%

  might be wrong, i read in 5 seconds.

  • 

    wuds on 13/09/2018 - 08:44

    It's not clear enough on the top. These guys might work with builders and work out a cost for you in places where you don't have house and land packages. I'm not sure how I am going to compare this

• 

  Some Guy on 12/09/2018 - 13:02

  +1

  Do a test.

  Go into one builder posing as "normal customer". Then negotiate a final price. Just before you sign, tell them that you'd like to take advantage of their offer to double your first home owner grant.

  Their reaction ought to tell you everything you need to know.

  • 

    wuds on 13/09/2018 - 08:47

    I would think the same happen.

    Personally I feel all these house and land packages have jacked up pricing. It feels that they cost significantly than building after buying a land.

    I do not know the actual cost of building a house on top the prices advertised. There may be significant amount of extra costs involved

    • 

      Some Guy on 13/09/2018 - 21:53

      Jacking up happens to every single commodity on the planet.

      I was suggesting the test as a way to find out if they charge FHO's more. I was thinking it would be somewhere in the vicinity of the amount they're offering to double.

  • 

    Scab on 13/09/2018 - 08:47

    Username checks out.

    • 

      wuds on 13/09/2018 - 08:57

      ??