Expanded 5 per cent deposit first home buyers scheme opens to all
Buying a first home now has one less hurdle with the federal government's 5 per cent deposit scheme opening to all first time buyers today.
But there are concerns over what impact the policy could have as property prices continue to grow.
The helping hand is open to all first home buyers, who from today, can pay as little as a 5 per cent deposit instead of 20 per cent.
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Buying a first home now has one less hurdle with the federal government's five per cent deposit scheme opening to all first time buyers today. 9News
"More young Australians can get the keys to their first home quicker," Prime Minister Anthony Albanese said of the scheme.
But it's a policy that could send prices up, with Treasury figures predicting a 0.5 per cent rise over six years.
Market analysts are concerned it could be more.
"That estimate does seem a bit conservative to me," Tim Lawless from Cotality told 9News.
Australian home values are already rising at their fastest pace in almost two years, increasing 0.8 per cent just last month.
"The prime minister and I are not going to look a generation of young people in the eye and tell them we won't do anything to help them," Housing Minister Clare O'Neil said.
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A Sydney couple could save a five per cent deposit in just under three years, compared to the more than 10 years it would take to save 20 per cent. 9News
The price cap to access the scheme set for Sydney is $1.5 million, meaning a couple could save a 5 per cent deposit in just under three years, compared to the more than 10 years it would take to save 20 per cent.
"It won't be too long until the most desirable areas exceed those price caps for each city," Lawless said.
Around Australia's other capital cities, the price cap limits are now set at:
- Brisbane: $1 million
- Canberra: $1 million
- Melbourne: $950,000
- Hobart: $700,000
- Adelaide: $900,000
- Perth: $850,000
- Darwin: $600,000
But the scheme won't have any affect on housing supply, which is the major issue.
The federal government is on track to fall at least 50,000 homes short this year in its bid to build 1.2 million properties by 2029.
The federal government is on track to fall at least 50,000 homes short this year in its bid to build 1.2 million properties by 2029. 9News
"Labor has failed on this, they're not going to meet their own targets," opposition defence spokesperson Angus Taylor said.
Treasurer Jim Chalmers acknowledged the government "need to do more".
"We need to do better to hit that target," he said.
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