Should first home buyers buy now and where?

The answer to this question always depends on the context. You would think that the Australian government has seen the folly of debt given the current extent of indebtness. Yet its solution to the current crisis is to provide first home grants to aspiring home buyers or builders. One would think that we could do with some more savers in the country. But the political agenda is not about good policy, but rather stimulating economic activity at any price; whether that causes financial ruin for some naive 20-24yo who has managed to save a deposit. Tough love from government.
It is not entirely a bad idea to shun such gratuities, but there are times and opportunities when you should buy property using such grants. The instances in which you might buy property could be:
1. you are employed with exposure to the rural sector
2. You are living in a rural area where property prices are low, yields are high
3. You have saved up a deposit and you would be borrowing less than $50,000.

Given that the Australian government is offering $14-23,000 to first home buyers, in this context I would happily buy a property in the countryside. It would be insane however to buy property in the city, or fringe areas for some time yet.
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Andrew Sheldon www.sheldonthinks.com