“Does a change of Government change my Finance options?
Simple answer is maybe, but it’s too soon to say.”
– Regan Lacey, Nexus Money
We do know that preceding the election the Labor Party announced a suite of policies to address the Cash Rate as well as ongoing concerns about high property prices some of which included:
“It’s a common story – parents wondering if their kids will ever achieve the great Australian dream of owning their home. First home buyers priced out of capital cities and regional centres where house prices have shot through the roof. Single parents who can’t get into the market.”
This scheme will support 10,000 Australians with 30-40% of their mortgage (depending on if it’s a new build or an older home) and as little as a 2% deposit from the buyers with participating lenders.
Whilst in the loan the purchaser of the property can buy “an additional stake” when they have the means to do so (from the covered 30-40%). Before this the buyer will not have to repay rent to the other stakeholder (the government). The government would then recover its equity and its share of capital gain when the house is sold.
“First home buyers will save up to $32,000 in mortgage insurance and be able to secure a home with a deposit as low as 5 per cent – with the government guaranteeing up to 15 per cent of the purchase price.”
This scheme focuses on opening up the available first home buyer funding opportunities directly for regional Australians.
“Over 62,000 First Nations people live in overcrowded housing in remote and very remote areas.”
This Scheme is intended to help Close The Gap and help fascilitate better health, employment and education outcomes for First Nation Peoples.
“Everyone from Master Builders Australia, the Property Council, Housing Industry Association and the Real Estate Institute of Australia to National Shelter, the Urban Development Institute of Australia, Homelessness Australia, Community Housing Industry Association and the Australian Council of Social Service have been calling for years for a National Housing and Homelessness Plan.”
The intention is to increase housing supply and improve housing affordability Australia wide, which the Labor Government believes will improve national productivity and economic growth.
Regan advises that “Time will tell if any of these initiatives help or hinder Buyers and Borrowers alike, or whether it just adds further pressure to home prices and rates and the ongoing debate around housing affordability. At this stage, the existing assistance such as FHOG, stamp duty concessions, FHLDS etcetera are all still in place.”
Want to know more contact our Broker Regan Lacey on 0431 132 010.
(Astir Recruitment Pty Ltd ACN 159 225 108 is a registered credit representative of Astute Financial Management Pty Ltd ABN 59093587010 Australian Credit License Number 364253).