Expanding First Home Buyer Scheme To $1.5 Million Properties A Fair Indication We Might Have A Problem Here

WENDELL HUSSEY | Cadet | CONTACT

As the 1st of October confronts the country, a big change to the housing market has come into force.

From today, the Home Guarantee Scheme has been expanded across the country.

The cap on purchases for Sydney for example has been lifted from $900,000 to an eye-water $1.5 million.

The cap in places like Brisbane, Canberra and Melbourne has been lifted to $1,000,000, and allows first home buyers to purchase a property with a 5% deposit – as well as avoid costly things like Lender’s Mortgage Insurance.

Many experts have re-iterated their opinions that the lifting of the ceiling on the scheme will of course drive property prices even higher.

The move also follows 8 consecutive months of housing price increases, as young people are enabled to take on even more debt and property investors are able to acquire more capital as interest rates decrease.

While a nice move for first home buyers who are somehow able to service a 1.4 million dollar mortgage (like 10 grand a month mortgage repayments lol) but don’t have a 10 or 20% deposit, it’s once again raised the issue that we might have a bit of a problem here.

“Yeah look, if we need to raise a first home buyer scheme to 1.5 million fucking dollars there might be some pretty fundamental issues with the housing market and the state of our country,” explained local Betoota Economist Saul Piotrowski.

“I mean maybe rather than raising a scheme to allow young people to handcuff themselves to a lifetime of debt, we could have a look at how we’ve turned a human right into an investment asset through government run and facilitated policies.”

“But I don’t think that’s beneficial to our nation’s media and political class.”

“So I guess everyone just has to keep on keeping on.”