Login
iscover
The great Australian dream of home ownership could be imminent for many Australians as the federal government moves to improve its Home Guarantee Scheme.
Changes to the scheme are set to occur on 1 July under an LNP government and include an expansion of the number of places available to 50,000 per year and an increase in property price caps, with one industry leader applauding the move.
Angus Raine, executive chairman at Raine & Horne, celebrates the Coalition’s proposed changes, believing they could reignite the dream of home ownership for many Australians.
“The policy offerings from the government and opposition are eminently preferable to the situation during previous elections, where the focus was on pulling the rug from under the more than 1 million mum and dad investors who have invested in real estate to help set them up for a comfortable retirement,” he said.
While the latest government move is a step in the right direction, Mr Raine called for both parties to consider further incentives to encourage home ownership and combat soaring property prices.
“While I applaud the support for first home buyers, both parties must consider ways that our next federal government could provide incentives for state and local governments to unlock their massive land banks. This strategy will address the issue of land shortages and real estate affordability long-term,” Mr Raine said.
Adding that “we’d also like to see incentives to encourage state governments to rapidly increase floor space ratios for residential apartment developments. This will enable governments to vertically grow cities rather than create urban sprawl.”
The Coalition’s proposed changes to the First Home Guarantee Scheme will see the number of spaces available increase to 35,000, with price caps in all states and territories also increasing at this time, lasting for the full 2022-23 financial year.
Under changes to the scheme, property price caps would increase by $100,000 in all states and territories except the ACT, where price caps will increase $250,000 from $500,000 to $750,000.
Prospective home buyers in Sydney will be able to purchase homes up to $900,000, with residents in Melbourne eligible to purchase a property up to $800,000 in value under changes to the scheme. However, despite the increase in property price caps nationwide, the ability to employ the scheme may be limited by the income limits placed on the scheme.
With income limits for home buyers remaining capped at $125,000 before tax for single income earners and up to $200,000 for couples hoping to employ the scheme, there are potential issues surrounding the property price caps sitting outside the lending range for those who qualify.
Newsletter
