Cannon Fodder

It was an act of treachery, the likes of which this country had never seen.

In the midst of a global financial crisis, investment banks were falling, countries were going broke and people were losing their life savings to scam artists. Just at this time, the leadership of the country decided to throw $14,000 packages out of the trenches, into the battlefields, and hope its most financially illiterate citizens would chase them.

It worked.

Thousands chased the money, chased up house prices and grabbed themselves a big debt backpack right when interest rates were at extreme lows.

Of course in defending this, we found that truth was not the first casualty of war, truth became the first casualty when Kevin Rudd and Tanya Plibersek opened their mouths. Gone was the talk of the first home owner's grant causing unaffordability, now it was the one thing helping kiddies buy their own house.

And most nearly anyone with a dollop of grey matter between their ears knew what the real game was - propping up house prices.

Rudd spelt out the pervasiveness of house mania to the country, albeit in his mealy-mouthed way.

"Our policy action here, given the significance which private dwelling investment represents in the national accounts, is to ensure that we maintain activity in the sector. That is why these one off measures have been embraced."

It was in the midst of that First Home Buyer Boost activity, in May last year, someone put down $335,000 for this 3x2 in Launceston.

One year on and it was listed again. No bites. Two and a half months, and one discount later, you can have it for $325,000. Now either those high tension electricity wires in the background have evaporated the owners, or they seriously want out.

We shouldn't draw too many conclusions here, but I will anyway. What are the odds? A house bought during the first home buyer's mania, six interest rate rises, and now a listing below the previous price?

I'll be ever grateful for Kevin and Tanya's contributions to public life.