There are big issues with Labor’s multi billion-dollar housing plan, experts warn

News.com.au - 14/04
Labor’s plan to get more young Australians into their first home sooner and for less cash upfront will inevitably drive up home prices, economists have warned.

Labor’s plan to get more young Australians into their first home sooner and for less cash upfront will inevitably drive up home prices, economists have warned.

Anthony Albanese yesterday unveiled two big ticket election commitments aimed at addressing the country’s housing affordability crisis.

If re-elected, the government will support first-time buyers to purchase a property with just a five per cent deposit, without having to fork out tens of thousands of dollars in lenders’ mortgage insurance, the prime minister announced.

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If re-elected, Labor will support first homebuyers to purchase with just a five per cent deposit. Picture: Jason Edwards / NewsWire

Based on the median home price of $820,000, hopeful first-timers would only need a deposit of $41,000 compared to the current standard 20 per cent amount of $164,000.

“The last time $41,000 covered the 20 per cent deposit for a median home was 2002,” Mr Albanese said. “That’s the generational scale of this change.”

Purchase price caps range from $1.5 million in Sydney to $1 million in Brisbane and $950,000 in Melbourne...
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