Latest news with #HomeGuaranteeScheme
Daily Mail
05-05-2025
- Business
- Daily Mail
Anthony Albanese's key election promise could backfire
Anthony Albanese 's plan to let all first-home buyers get in with five per cent mortgage deposit is expected to push up house prices. Unlike the existing Home Guarantee Scheme, there no are income caps or limits on the number of places. Under Labor's plan, due to come into effect in January 2026, the house price caps will match existing median prices - marking a huge change for first-home buyers. This means someone will be able to get a Sydney property with a backyard for $1.5million or a $1million home in Brisbane. Economist Saul Eslake, the principal of Corinna Economic Advisory, said Labor's plan would push up house prices by enabling property newcomers to borrow more. 'Ultimately, the answer is, yes, it will push up house prices,' he told Daily Mail Australia. 'Anything that allows Australians to spend more on housing, than they'd be able to otherwise, results in higher prices. 'It ultimately depends on how many more Australians and how much more they are able to borrow.' The Labor policy would see Sydney's property price cap climb from $900,000 now to $1.5million from January 2026, broadly reflecting CoreLogic's median house price for April 2025. 'We're not talking about people who are struggling here,' Mr Eslake said. 'If you can afford to buy a $1.5million house, you might ask why you need assistance from the government but nonetheless, maybe someone who had raised a big enough deposit to be able to get a loan that enables them to buy a $1.3million house, might now, depending on their income, be able to borrow enough to allow them to buy a $1.5million house.' In Brisbane, the first-home buyer limit is climbing from $700,000 to $1million, as Melbourne's limit goes up from $800,000 to $950,000. Perth's limit increases from $600,000 to $850,000, as Adelaide's cap rises from $600,000 to $900,000. Canberra's limit rises from $750,000 to $1million, as Hobart's ceiling edges up to from $600,000 to $700,000, but the Northern Territory limit remains at $600,000 reflecting Darwin house prices hardly moving. Labor's policy would effectively replace lenders' mortgage insurance, normally charged to borrowers with a deposit under 20 per cent, but bank loan approval would still be based on a first-home buyer being able to cope with a three percentage point rise in variable mortgage rates. A borrower would stump up a five per cent deposit and the government would guarantee the rest of the 20 per cent without becoming a shareholder in the property, as it effectively nationalised lenders' mortgage insurance for first-home buyers. 'The impact of being able to get the government guarantee - 15 per cent of your mortgage - that impact will be immediate,' Mr Eslake said. 'But how much it will push up house prices depends on how many people will be able to borrow more money as a result of the government - the bit between five and 20 per cent. 'It will help some people in the same way first-home owner grants helped some people - those who qualify for it - but it pushes up prices for everyone.' Liberal prime minister Robert Menzies introduced Australia's original first-home buyer grant in 1964 at the urging of future PM John Howard, who was NSW Young Liberals president at the time. Labor prime ministers Gough Whitlam and Bob Hawke scrapped Coalition first-home buyer grants after they won from Opposition, in 1972 and 1983. But former Labor PM Kevin Rudd expanded them during the Global Financial Crisis in 2009 and Mr Albanese campaigned for re-election in 2025 with a new first-home buyer policy. Mr Eslake said Labor's landslide re-election demonstrated how the ALP had successfully tapped into the sentiment of more voters who wanted house prices to rise instead of fall. 'The fundamental principal that housing should be a means of wealth creation - Labor is as keen on that as the Libs are,' he said. Labor went to the election opposing the Coalition's plan to allow first-home buyers to withdraw $50,000 from their super to fund a mortgage deposit. It also opposed former Liberal leader Peter Dutton's plan to enable first home buyers to claim mortgage repayments as a tax deduction on the first $650,000 of a loan for a newly-built home for five years, provided they were an owner-occupier. Mr Albanese dumped Labor's plan to scrap negative gearing for future purchases of existing properties after replacing Bill Shorten as Opposition Leader in 2019, following the party's third consecutive election loss. He also scrapped Labor's plan to halve the 50 per cent capital gains tax discount. The Greens wanted to force Labor to limit negative gearing to one property for existing investors and remove the capital gains tax discount, if there had been a hung parliament. But Labor's landslide victory in the House of Representatives makes that unlikely, despite Treasurer Jim Chalmers last year asking his department to model negative gearing changes. The Albanese government also promised to build 100,000 new homes for first-home buyers at a cost of $10billion, with housing supply failing to keep pace with immigration-driven population growth. Before the election, the Greens passed Labor's Help To Buy Scheme whereby the federal government would take a 40 per cent equity in a property for those with a small, two per cent deposit.
Sky News AU
02-05-2025
- Business
- Sky News AU
Liberal and Labor have been accused of abandoning renters
Renters are the 'forgotten people' this election cycle as both major parties abandon nearly 31 per cent of the nations voters. In the build-up to the federal election on May 3, the two major parties have both set out to help first home buyers, but have announced very little support for those who are priced out of the market. Home in Place group executive manager Martin Kennedy said the major parties have made renters seem invisible and turned their attention on more heavily indebting first home buyers. 'Renters are being ignored,' he said. 'I like to describe them as the new forgotten people and it's been a long running thing. 'We've had this obsession with helping people get bigger mortgages for decades, while people over the last few years are being asked to swallow 40 per cent rent increases.' Mr Kennedy's comments come as both parties have used the election build up to announce support for aspiring first home buyers, but nothing for those who rent. 'The deal was supposed to be you do the right thing, put your head down, you'll earn a comfortable life, get a decent job and be able to afford a decent home,' 'People who think you can let house prices inflate to infinity and the solution is just dream up new ways to help people afford the buy in price by making them eldible for bigger debt, forget the fact that at the end of the day only ends one way.' 'We end up in a country that God forbid you need to go to the hospital, you might be treated by a nurse who's been sleeping in her car for the last six months, and is that the place you want to be?' Labor set a target of 1.2 million new homes by 2029, expanding the Homes for Australian Plan, announced the Help to Buy Schemes – with the government playing the role of the bank of mum and dad, and a Home Guarantee Scheme which allows first home buyers to get in with a 5 per cent deposit. The Liberal Party will let Aussies take up to 40 per cent or $50,000 out of their super, allow first home buyers to claim the taxes on the interest paid on a first home up to $650,000 of a mortgage and have also vowed to maintain the Home Guarantee Scheme Program. The two majors agree on banning foreign ownership temporarily and neither say they will make any changes to negative gearing. The Real Estate Institute of Australia president, Leanne Pilkington said the group welcomed both parties' reforms, although highlights they need to go further to help with housing affordability. 'Both major parties firmly recognise that housing is a priority issue for voters. 'This election presents a real opportunity to deliver the long-term policy reform needed to make home ownership a reality for more Australians, the incoming Government will be judged on its ability to turn policy into actual houses.' The REIA say a lack of supply remains the issue stopping more Australians get into the market. Mr Kennedy said both parties are simply driving up house prices with policies that do not help Aussies in the long run. 'There is nothing of any substance for renters and realistically in the long run, even the stuff that's been announced for first home buyers is ultimately counter-productive because all of it, literally all of it, is based on helping people access a bigger pile of debt which ultimately feeds into house prices,' Mr Kennedy said. The lack of help comes for renters as research from Anglicare shows the cost of living is deepening, with six in 10 saying they are worse off than 12-months ago. According to the charity, 61 per cent of those considering or receiving food and financial assistance say housing affordability is significantly impacting their daily lives, forcing impossible choices between rent, groceries, and other essentials. Everybody's Home spokesperson Maiy Azize agreed, saying neither side of politics is addressing the fundamental issue, prices being 'just too high'. 'Most of the things that we've seen [from the major parties] will add fuel to the fire and make house prices more expensive,' Ms Azize said. 'Anytime that you're making it easier for more people to compete at auctions and make bids without increasing the supply of affordable homes, the only people that you're really benefiting are people who are selling. Ms Azize said a lot of homeowners themselves would benefit from a slight decline in house prices as it would give them the flexibility to move. 'The only reason that you want house prices to go up is so that you could afford these other ridiculous things on the market. The only people who benefit here are people who are a lot older, who are just downsizing,' she said. 'The problem that we've got is that politicians are afraid of particular constituencies, and they might not be big constituencies, but people who invest in housing, and people who are perhaps older and you know, have some retirement savings tied up in housing.'
News.com.au
02-05-2025
- Business
- News.com.au
‘Forgotten people': Major parties urged to support renters
Renters are the 'forgotten people' this election cycle as both major parties abandon nearly 31 per cent of the nations voters. In the build-up to the federal election on May 3, the two major parties have both set out to help first home buyers, but have announced very little support for those who are priced out of the market. Home in Place group executive manager Martin Kennedy said the major parties have made renters seem invisible and turned their attention on more heavily indebting first home buyers. 'Renters are being ignored,' he said. 'I like to describe them as the new forgotten people and it's been a long running thing. 'We've had this obsession with helping people get bigger mortgages for decades, while people over the last few years are being asked to swallow 40 per cent rent increases.' Mr Kennedy's comments come as both parties have used the election build up to announce support for aspiring first home buyers, but nothing for those who rent. 'The deal was supposed to be you do the right thing, put your head down, you'll earn a comfortable life, get a decent job and be able to afford a decent home,' 'People who think you can let house prices inflate to infinity and the solution is just dream up new ways to help people afford the buy in price by making them eldible for bigger debt, forget the fact that at the end of the day only ends one way.' 'We end up in a country that God forbid you need to go to the hospital, you might be treated by a nurse who's been sleeping in her car for the last six months, and is that the place you want to be?' Labor set a target of 1.2 million new homes by 2029, expanding the Homes for Australian Plan, announced the Help to Buy Schemes – with the government playing the role of the bank of mum and dad, and a Home Guarantee Scheme which allows first home buyers to get in with a 5 per cent deposit. The Liberal Party will let Aussies take up to 40 per cent or $50,000 out of their super, allow first home buyers to claim the taxes on the interest paid on a first home up to $650,000 of a mortgage and have also vowed to maintain the Home Guarantee Scheme Program. The two majors agree on banning foreign ownership temporarily and neither say they will make any changes to negative gearing. The Real Estate Institute of Australia president, Leanne Pilkington said the group welcomed both parties' reforms, although highlights they need to go further to help with housing affordability. 'Both major parties firmly recognise that housing is a priority issue for voters. 'This election presents a real opportunity to deliver the long-term policy reform needed to make home ownership a reality for more Australians, the incoming Government will be judged on its ability to turn policy into actual houses.' The REIA say a lack of supply remains the issue stopping more Australians get into the market. Mr Kennedy said both parties are simply driving up house prices with policies that do not help Aussies in the long run. 'There is nothing of any substance for renters and realistically in the long run, even the stuff that's been announced for first home buyers is ultimately counter-productive because all of it, literally all of it, is based on helping people access a bigger pile of debt which ultimately feeds into house prices,' Mr Kennedy said. The lack of help comes for renters as research from Anglicare shows the cost of living is deepening, with six in 10 saying they are worse off than 12-months ago. According to the charity, 61 per cent of those considering or receiving food and financial assistance say housing affordability is significantly impacting their daily lives, forcing impossible choices between rent, groceries, and other essentials. Everybody's Home spokesperson Maiy Azize agreed, saying neither side of politics is addressing the fundamental issue, prices being 'just too high'. 'Most of the things that we've seen [from the major parties] will add fuel to the fire and make house prices more expensive,' Ms Azize said. 'Anytime that you're making it easier for more people to compete at auctions and make bids without increasing the supply of affordable homes, the only people that you're really benefiting are people who are selling. Ms Azize said a lot of homeowners themselves would benefit from a slight decline in house prices as it would give them the flexibility to move. 'The only reason that you want house prices to go up is so that you could afford these other ridiculous things on the market. The only people who benefit here are people who are a lot older, who are just downsizing,' she said. 'The problem that we've got is that politicians are afraid of particular constituencies, and they might not be big constituencies, but people who invest in housing, and people who are perhaps older and you know, have some retirement savings tied up in housing.'
Perth Now
02-05-2025
- Business
- Perth Now
Major voting block both parties forgot
Renters are the 'forgotten people' this election cycle as both major parties abandon nearly 31 per cent of the nations voters. In the build-up to the federal election on May 3, the two major parties have both set out to help first home buyers, but have announced very little support for those who are priced out of the market. Home in Place group executive manager Martin Kennedy said the major parties have made renters seem invisible and turned their attention on more heavily indebting first home buyers. 'Renters are being ignored,' he said. 'I like to describe them as the new forgotten people and it's been a long running thing. 'We've had this obsession with helping people get bigger mortgages for decades, while people over the last few years are being asked to swallow 40 per cent rent increases.' The 1 in 3 Aussies who rent have been the 'forgotten people' of this election. NewsWire / Simon Bullard. Credit: News Corp Australia Mr Kennedy's comments come as both parties have used the election build up to announce support for aspiring first home buyers, but nothing for those who rent. 'The deal was supposed to be you do the right thing, put your head down, you'll earn a comfortable life, get a decent job and be able to afford a decent home,' 'People who think you can let house prices inflate to infinity and the solution is just dream up new ways to help people afford the buy in price by making them eldible for bigger debt, forget the fact that at the end of the day only ends one way.' 'We end up in a country that God forbid you need to go to the hospital, you might be treated by a nurse who's been sleeping in her car for the last six months, and is that the place you want to be?' NED-7083-Housing-price-changes Labor set a target of 1.2 million new homes by 2029, expanding the Homes for Australian Plan, announced the Help to Buy Schemes – with the government playing the role of the bank of mum and dad, and a Home Guarantee Scheme which allows first home buyers to get in with a 5 per cent deposit. The Liberal Party will let Aussies take up to 40 per cent or $50,000 out of their super, allow first home buyers to claim the taxes on the interest paid on a first home up to $650,000 of a mortgage and have also vowed to maintain the Home Guarantee Scheme Program. The two majors agree on banning foreign ownership temporarily and neither say they will make any changes to negative gearing. Both Anthony Albanese and Peter Dutton's policies will see Australians in more debt. Jason Edwards / NewsWire Credit: News Corp Australia Both Anthony Albanese and Peter Dutton's policies will see Australians in more debt. Richard Dobson / NewsWire Credit: News Corp Australia The Real Estate Institute of Australia president, Leanne Pilkington said the group welcomed both parties' reforms, although highlights they need to go further to help with housing affordability. 'Both major parties firmly recognise that housing is a priority issue for voters. 'This election presents a real opportunity to deliver the long-term policy reform needed to make home ownership a reality for more Australians, the incoming Government will be judged on its ability to turn policy into actual houses.' The REIA say a lack of supply remains the issue stopping more Australians get into the market. Mr Kennedy said both parties are simply driving up house prices with policies that do not help Aussies in the long run. 'There is nothing of any substance for renters and realistically in the long run, even the stuff that's been announced for first home buyers is ultimately counter-productive because all of it, literally all of it, is based on helping people access a bigger pile of debt which ultimately feeds into house prices,' Mr Kennedy said. Both parties have left renters behind. Jason Edwards / NewsWire Credit: News Corp Australia The lack of help comes for renters as research from Anglicare shows the cost of living is deepening, with six in 10 saying they are worse off than 12-months ago. According to the charity, 61 per cent of those considering or receiving food and financial assistance say housing affordability is significantly impacting their daily lives, forcing impossible choices between rent, groceries, and other essentials. Everybody's Home spokesperson Maiy Azize agreed, saying neither side of politics is addressing the fundamental issue, prices being 'just too high'. 'Most of the things that we've seen [from the major parties] will add fuel to the fire and make house prices more expensive,' Ms Azize said. 'Anytime that you're making it easier for more people to compete at auctions and make bids without increasing the supply of affordable homes, the only people that you're really benefiting are people who are selling. Ms Azize said a lot of homeowners themselves would benefit from a slight decline in house prices as it would give them the flexibility to move. 'The only reason that you want house prices to go up is so that you could afford these other ridiculous things on the market. The only people who benefit here are people who are a lot older, who are just downsizing,' she said. 'The problem that we've got is that politicians are afraid of particular constituencies, and they might not be big constituencies, but people who invest in housing, and people who are perhaps older and you know, have some retirement savings tied up in housing.'
Canberra Times
01-05-2025
- Business
- Canberra Times
Explainer: Labor's housing plan ahead of the election
The Short Version Labor is going big on housing ahead of the 2025 election - pledging 100,000 homes for first-home buyers, billions in new investment, rent support, crisis accommodation, and a crackdown on foreign investment. The goal? More homes, quicker builds, and better affordability for Australians. 100,000 homes just for first-home buyers Labor will invest $10 billion to build up to 100,000 new homes specifically for first-home buyers, locked away from property investors. These homes will be built near work and family, with support for land, construction, and enabling infrastructure. Universal 5% deposit access From 2026, the Home Guarantee Scheme opens up to all Australians buying their first home: No income caps No participant limits 5% deposit requirement nationwide. This means broader access to ownership, especially in high-demand urban areas. Smaller mortgages through Help to Buy Labor's Help to Buy shared equity scheme (starting late 2025) has the government cover up to 40% of a new home's cost (30% for existing homes). First-home buyers need a lower deposit Smaller mortgages mean lower repayments You can gradually buy out the government's stake over time Rent relief Labor has delivered a 45% increase in Commonwealth Rent Assistance - the biggest back-to-back increase in over 30 years, helping over 1 million households better manage rising rents. Supercharging housing supply Labor is driving the biggest housing build in Australian history with a $43 billion investment and a target of 1.2 million new homes over five years. Social and affordable housing push Through the Housing Australia Future Fund and other programs, Labor is delivering: 55,000 social and affordable homes (28,000 already in development) Prioritising housing for vulnerable women, children, veterans, and key workers Aiming to cut social housing waitlists Support for crisis accommodation Labor is investing a record $1.2 billion into new crisis and transitional housing-for older women, young Australians, and those escaping family violence-to provide safe, emergency shelter for the most vulnerable. More tradies, faster builds To meet ambitious targets, Labor is investing in: $78 million to qualify 6,000 tradies via a fast-tracked skills program Free TAFE and $10,000 incentives for new apprentices $54 million for prefab/modular home manufacturing $120 million to help states cut planning red tape Tightening foreign ownership rules Starting 1 April 2025, Labor is imposing a 2-year ban on foreign residents buying existing homes and cracking down on foreign land banking, to ensure more stock stays available for Australians. What do critics say? Some experts remain cautious. While the 100,000 homes promise is welcomed, questions remain on how quickly they can be delivered given land availability and planning hurdles. Others warn that expanded buyer support could drive up prices if supply doesn't scale fast enough. The shared equity model also raises long-term ownership questions for participants. The Final Pitch Labor is presenting a bold, multi-layered housing plan: mass construction, help for first-home buyers, rent relief, and supply chain reforms. Supporters see a serious national response to a decades-in-the-making crisis. Critics question the pace of delivery but agree housing is now at the heart of the 2025 election. SEE ALL: Labor's offical housing policy
