First-time home buyers will get help in the federal budget, more money for roads and parking lots to be announced

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More first-time home buyers could gain easier access to the housing market as the government expands its home guarantee programs.

The programs, which allow first-time home buyers to buy a property with a 5% or 2% down payment, were due to end in June.

However, with property prices rising and concerns that the Australian dream of home ownership is now out of reach for many, the government will once again expand the schemes and establish an additional one for area residents. regional.

Housing affordability is an issue many Liberal MPs have been keen to address in the run-up to the federal election, as backbench MP Jason Falinksi pointed out earlier this month when posting of a Federal Parliament report on housing.

“We’ve seen in poll after poll this week that people are telling us one thing and one thing clearly,” he said.

“Of all the issues that are on the table for this election, housing affordability is the most important in most parts of Australia.”

Details will be outlined in Tuesday’s budget, and Treasurer Josh Frydenberg said he was confident the programs would help more people who had struggled to enter the market.

“Since January 2020, the Government’s Home Guarantee Scheme has helped nearly 60,000 homebuyers buy their first home,” he said.

“That’s why, in tomorrow night’s budget, we’re helping even more aspiring owners get into the market.”

The schemes can only be used on homes under a certain price guide set by the government and a person is eligible if they earn no more than $125,000 per year and $200,000 for couples.

State/Territory

Price caps in the capital (and major regional centers in NSW, VIC and QLD)

Rest of State/Territory Price Cap

New South Wales

$800,000

$600,000

CIV

$700,000

$500,000

QLD

$600,000

$450,000

Washington

$500,000

$400,000

HER

$500,000

$350,000

TAS

$500,000

$400,000

ACT

$500,000

N / A

NT

$500,000

N / A

Home Guarantee programs are only available to people who buy a home for sale below the thresholds listed above.

50,000 places per year

The expanded program includes 35,000 spaces per year under the Première Habitation Guarantee, which was previously known as the first home loan deposit system.

It allows people to put down a 5% down payment without having to pay mortgage loan insurance because the government guarantees the loan.

Five thousand places per year will be offered under the Family Home Guarantee, which allows single parents to pay a 2% deposit.

A new scheme aims to encourage migrants to consider settling in regional areas. (ABC News)

There will also be a new scheme put in place called the Regional Housing Guarantee (RHG) which aims to encourage more construction outside the capitals.

It will be accessible to first-time home buyers, people who have not owned a property in the past five years and permanent residents, which the government hopes will encourage migrants to settle in regional areas. .

To access the regional scheme, applicants must either build or buy a newly built house and there will be 10,000 places per year available from October 1.

Shadow Treasurer Jim Chalmers said the regional program outlined by the government today was very similar to the Federal Labor approach announced earlier this month.

“They copied our policy today for regional first time buyers, that’s a good thing as far as we’re concerned. He [the scheme alone] won’t solve the whole problem,” he told Channel Nine.

More money for roads, rail and transport

Tuesday’s budget will also include nearly $18 billion for transportation infrastructure that will be spent on upgrading and building roads and railroads.

It includes $1 billion to upgrade the rail line between Sydney and Newcastle, $3 billion for key freight projects in Victoria and $1.6 billion for the rail extension from Brisbane to Sunshine Coast.

There is also more money for commuter parking lots, an echo of the 2019 election campaign where millions of dollars were pledged for parking lots near train stations.

Many parking lots have still not been built, while others have been scrapped and the Australian National Audit Office (ANAO) found that the choice of locations was not based on need and focused rather on seats held by liberals or fringes.

However, that hasn’t stopped the government from earmarking more than $47 million in this year’s budget, with the bulk of the funding earmarked for Liberal voters in New South Wales and Victoria.

New projects will receive some of the money, but the majority will go to car parks announced three years ago in the last election that have still not been completed, such as improvements to suburban car parks in Woy Woy and Panania.

Finance Minister Simon Birmingham defended the extra funding for car parks and said it was 0.3% of announced infrastructure spending.

“So that’s a very small element…the magnitude of the investment in terms of projects in every major city across the country, in every state across the country, is helping people get to work and back home more quickly and safely,” he said. noted.

“Car parks to access public transport services are an important part of this.”

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