Budget To Boost Home Ownership

More first home buyers will be able to enter the property market following the Federal Budget commitment to double the number of places in the Home Loan Guarantee scheme.

The scheme has already helped 60,000 Australians buy a home since it was introduced in January 2020.

The budget announcement means there will be 50,000 places on offer a year.

The scheme helps first home buyers to purchase a new or existing home with a deposit of as little as five per cent.

Other commitments to housing including 10,000 guarantees each year under a new Regional Home Guarantee from 1 October 2022 to 30 June 2025. There will also be 5000 guarantees each year from 1 July 2022 to 30 June 2025 to expand the Family Home Guarantee, which helps single-parent homes with children buy their first home or to re-enter the housing market with a deposit of as little as 2%. The First Home Guarantee will be expanded to 35,000 commitments per year.

Negative Gearing To Stay

Changes to negative gearing have been ruled out by both major political parties in the lead up to the Federal Election, according to the Real Estate Institute of Australia.

The REIA reveals it has a commitment from Labor, who had flagged removing negative gearing in the leadup to the last election, that it would retain negative gearing it if were to win the election this time.

REIA president Hayden Groves says this should give people the confidence to keep investing in the Australian property market.

He says almost a third of Australians live in rental properties and changes to negative gearing would not just affect investors but renters.

Groves says suggestions by Labor that it will reform stamp duty if it were to win Government is also reassuring.

“Without national leadership to phase out this antiquated tax, it will just be a promise of reform from the introduction of the GST in the year 2000 that remains undelivered,” Groves says.

Terry Ryder