Economic Principles and Decision Making

ECONOMIC PRINCIPLES
AND DECISION MAKING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
A) Compare and contrast between FHOG and FHP on the basis of eligibility requirements.....1
B) Demand and supply factors....................................................................................................3
C) FHOG Market structure:.........................................................................................................6
D) Stamp Duty removal...............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Economic Principles and Decision Making explain the various scenarios important for
enabling strong balance between demand and supply chain in an economy which is highly
relevant to maintain proper working in an organization. This report explains working of First
Home owner grant which started in 2000 and offers housing grants for youngsters and permanent
residents of Australia. It also analyses First Home plus facilities for housing of people around the
country, and how both differentiate with each other on various parameters. It further explains
how the demand and supply in economy play an active role in reaching high optimum targets for
successfully enabling people to buy houses under reasonable pricing structure. This report
analyses how elasticity of demand will positively impact FHOG strategies for further decisions
in constructing pricing strategies for long term goodwill among customers (O'Rourke &
Nash,2019). It explains the deep impact of putting stamp duties on housing policies, which will
further decide their purchasing decisions as it makes the whole procedure a lot more elaborative
and complicated. It analyses how removing grants will help people to get strong housing formats,
facilities with innovative services and efficient grants.
A) Compare and contrast between FHOG and FHP on the basis of eligibility requirements
FHOG and FHP are two guideline to different eligibility criteria to purchase home in Victoria
thus individual has to find out best eligibility as per it particular circumstances. Therefore FHOG
policies in Victoria are as
FHOG in Victoria offers specific payment to people for incurring various legal fees, title
search and stamp duties to the people that purchase building property for the first time. Various
grants that are offers by FHOG to first homeowners in Victoria are:
 $20000 to those people whose property are newly established in regional area and signed
agreement within 1 July 2017 and 30 July 2020.
 $10000 to those people whose property values of $750000 and not situated at regional
area.
People that are eligible for first home owner grant have to purchase residential house for first
time and it is the place where individual will have to stay for 12 months. Therefore to get
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benefits of such grant person have to purchase residential house and live in it for 12 months from
the date construction is completed. At the same time partner and spouse that have received
FHOG are not eligible and neither those have their own house in Australia before 1 July 2000.
There are various additional exemption and concession are also provides to first home buyers
such as stamp duty exemption to young farmer and pensioners. People can apply to such grant
through state revenue office or agents it depends upon choice and requirements of individual.
Therefore all such are eligibility criteria for first house owner in Victoria to get benefits of first
house grant (Cho, Li, & Uren,2019)
Whereas First Home plus offers concessional rate of transfer duty to those people that buy
home for first time whether it is new or existing house in NSW . Therefore for land values
should not be less and must be purchased between 1 July 2009 and 31 December 2011. As
similar to FHOG it also has various eligibilities criteria to get benefit of First home plus schemes
such as:
 Individual or person must be age of 18 years and not be an company or trust that
means it should be person that have minimum age of 18 years to get benefit of First
home plus scheme.
 Second eligibility criteria is that building must be purchased between 1 July 2009 and
31 December 2011.
 Australian citizenship is must for using first home plus schemes.
 The property can be owned by number of people or single individual.
On other hand people that are not eligible for such schemes are people that have already received
assistance of FHP’s and co-owned house in Australia . Such people cannot get benefit of FHP’s
policy while buying house at Victoria.
Residential requirement for First house plus schemes are:
The individual and co owner that buy home has to reside in home within 12 month of purchase
for at least continuous 6 months. In case someone has purchase land and then it has built house
that he has to stay there after construction within 12 month period. But individual those who
belong to Australian Defence force have not to follows all such residential requirements . At last
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