Liberals are scaring first-home buyers with warnings of negative equity – but experts believe there’s little to worry about
Experts argue that concerns regarding negative equity for first-time homebuyers in Australia are overstated. Falling property values are primarily concentrated in high-end markets rather than entry-level segments.
Why it matters
This addresses the financial anxiety of young homeowners facing potential mortgage stress amid rising interest rates.
Experts say even for those who may have bought property on the 5% deposit scheme, the impact of negative equity will only be felt if they are forced to sell. Photograph: Joel Carrett/AAP View image in fullscreen Experts say even for those who may have bought property on the 5% deposit scheme, the impact of negative equity will only be felt if they are forced to sell. Photograph: Joel Carrett/AAP Housing Analysis Liberals are scaring first-home buyers with warnings of negative equity – but experts believe there’s little to worry about Patrick Commins Economics editor Exclusive: Economists say falling house prices are largely in the more expensive parts of Sydney and Melbourne’s markets and are less likely to affect first-time property owners
The framing focuses on debunking political warnings from Liberal MPs, suggesting the fears are politically motivated.
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