The extraordinary rise in house prices has become a national disaster, yet governments still don't seem to grasp the basics: Economics 101 teaches that supply and demand regulate the market. Right now, supply is woefully short while demand remains insatiable. So how do governments respond? By offering ever more assistance to first home buyers - measures that only push demand higher. From 1 October, the rules for the First Home Buyer (FHB) Guarantee will be loosened, adding more fuel to the fire.

Subscribe now for unlimited access .

Login or signup to continue reading All articles from our website The digital version of Today's Paper All other regional websites in your area Continue

First home buyers should prepare now for rules change

The FHB Guarantee lets eligible bu

See Full Page