Higher-earning Australians flocking to 5% first home deposit scheme with some borrowers earning over $200,000
Australian government data reveals that high-income earners are increasingly utilizing a 5% home deposit scheme originally intended for lower-income buyers. Economists warn that the removal of income caps is inflating property prices by increasing the purchasing power of those who could already afford to buy.
Why it matters
This highlights a potential policy failure where government subsidies intended for social equity are instead exacerbating housing affordability issues for the broader population.
The 5% deposit scheme has been touted by Labor as a way to increase home buying, but ABS data indicates there was just a 3% increase in first home buyers from October to March. Photograph: Christopher Hopkins/AAP The 5% deposit scheme has been touted by Labor as a way to increase home buying, but ABS data indicates there was just a 3% increase in first home buyers from October to March. Photograph: Christopher Hopkins/AAP Housing Higher-earning Australians flocking to 5% first home deposit scheme with some borrowers earning over $200,000 Exclusive: Economists warn Labor’s removal of caps could be pushing up prices as support flows to people in better financial positions
The framing emphasizes the negative economic impact of government policy changes and highlights the critique from economists regarding wealth inequality.
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