Helping 10,000 First home Buyers
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It's The Real Estate Podcast, brought to you by Ray White, the largest real estate and property group in Australasia. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio, also on Spotify and Apple Podcasts, or wherever you get your podcast from. Well, another Saturday has rolled around already, March the 26th, and if you're attending an auction today and hoping to secure that home, all the very best of luck. May the opposition bidders fall away very quickly in the bidding. And talking of the opposition... Coming up in just a moment, we're going to have a look at the news about how an Albanese Labor government will help 10,000 first home buyers a year in regional Australia to buy a home.
First home buyers, they say, will save up to $32,000 in mortgage insurances and be able to secure a home with a deposit as low as 5%. with the government guaranteeing up to 15% of the purchase price. Labour's plan will bring home ownership back into reach, they say, for tens of thousands of Australians in regional Australia over the next few years. It's the main centre forecast with propertybuyer.com.au. All right, let's have a look at the weather. Firstly, for Sydney, expecting some showers today with a high of 24 degrees. Melbourne, mostly fine, 24 degrees. And in Brisbane, expecting showers with 26 degrees. And in Perth, expect a high of 30 degrees, showers and a possible storm. It's your weekend real estate podcast.
As mentioned, Labor says that the housing crisis is hitting regional Australia the hardest with many regional areas facing the largest drops in housing affordability. They say the cost of buying a house in regional areas has gone up faster than in capital cities on average. At the same time, rent in many places has jumped by thousands of dollars a year. Existing programs for first home buyers, they say, are fully subscribed and many Australians are missing out. So what are the details? Well, Labour's regional first home buyer support scheme will help 10,000 first home buyers a year in regional Australia to buy a home. This will approximately triple the number of people in regional areas who can access a government guarantee scheme.
Labor's Regional First Home Buyer Support Scheme will provide a government guarantee of up to 15% for eligible first home buyers so locals with a 5% deposit can avoid paying mortgage insurance saving up to $32,000. And to take advantage of the scheme, locals will need to live outside a capital city and be a first home buyer who is an Australian citizen over 18, live in the house purchased, have a taxable income of up to $125,000 per year for singles and up to $200,000 a year for couples. And to that point, a national shared equity scheme, which was a talking point with Brendan Coates earlier this week on the Real Estate Podcast, where participation, he said, would be restricted to singles with incomes below $60,000 and couples with combined incomes below $90,000.
Yeah, so look, half of all Australians aged 25 to 64, so working age Australians that are single, earn less than $60,000 a year. And about 25% of couples earn less than $90,000. Now, the reason we chose those levels is you're providing support, you're adding to housing demand. The risk with anything that you do that adds to housing demand is that you end up just pushing up prices. That's the issue with first-home buyers grants. That's the issue with lots of these other policies. We think it's justified here because those income, people earning less than those incomes are precisely the people that are struggling to buy a home and are otherwise at risk of potentially being in poverty when they retire in 40 years' time.
And so we restrict it to those cohorts so that you're making sure that for this scheme that you're putting on the table, the majority of the people that are going to take up the scheme are probably going to be people that would not have purchased a house otherwise. It's not just people who would have bought anyway, but this just brings forward when they buy by a couple of years.
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