Assisted by James
Duff.
Prior to the Coalition's shock victory in the recent federal
election, Prime Minister Scott Morrison proposed a new
'First Home Buyer Deposit Scheme'. This scheme, aimed
at first home buyers, seeks to address the
issue of housing affordability across Australia.
Australia's housing affordability problem is complex and
requires immediate attention. However, as is generally the case,
the pre-election promises of politicians should be taken with a
grain of salt - and with this in mind, it is important for the
proposed scheme to be carefully examined.
Under the First Home Buyer Deposit Scheme, purchasers would only
require a 5% deposit for a mortgage, as compared with the usual
10-20%. The scheme will be available to 10,000 people annually,
with the Government acting as guarantor on the mortgages. As it
stands, the Government plans to invest $500 million worth of equity
in order to guarantee these loans.
