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Millennials and people in regional areas have utilised the first home buyers scheme to get on the property ladder.
More than three-quarters of those who have taken up the government’s First Home Loan Deposit Scheme are between 18 and 34, and when you break that down even further, 34 per cent are between the age of 25 and 29.
The latest figures from the Housing Minister revealed about a third of the 10,000 reduced deposit loans have been snapped up.
The Housing Industry Association (HIA) believes this update showed the scheme is already helping millennials reach their home-ownership dreams.
“These figures ring true with research undertaken for HIA in 2018 which found that 92 per cent of renters aspire to own their own home, yet only 49 per cent believe they will achieve that dream. The scheme is clearly helping,” HIA industry policy chief executive Kristin Brookfield said.
“Where first home buyers are looking to live is also encouraging. A large number of applicants, including millennials, are looking to buy outside the major cities of Sydney, Brisbane and Melbourne. This suggests that people are starting to think outside the box (and the capital cities) when they think about buying their first home.”
Although the price cap in regional areas is about $400,000, most buyers are seeking approvals below that maximum price, she said.
“Free-standing houses are the most popular purchase with the scheme, which tends to suggest people are buying existing homes, rather than new homes. This is something HIA has raised with the government, and we will continue to investigate as the scheme matures to ensure first home buyers have a choice.”
The government announced earlier this month it would add a further 10,000 guaranteed loans from the start of July for more Australians to take up the scheme.
However, Ms Brookfield would hope the strength in the program will encourage the government to increase the number of places.
“All Australians seek to have secure housing options. Home ownership is an important fundamental of achieving that and increasing housing supply will have [a] trickle-down effect for the economy as [a] whole,” she said.
“HIA is heartened to see the scheme receiving so much interest and so many first home buyers now being able to achieve their home-ownership dream.”
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