{"id":35195,"date":"2025-10-02T15:41:15","date_gmt":"2025-10-02T05:41:15","guid":{"rendered":"http:\/\/www.16news.com.au\/?p=35195"},"modified":"2025-10-02T15:41:15","modified_gmt":"2025-10-02T05:41:15","slug":"labors-5-percent-deposit-scheme-will-add-billions-to-property-prices","status":"publish","type":"post","link":"http:\/\/www.16news.com.au\/index.php\/2025\/10\/02\/labors-5-percent-deposit-scheme-will-add-billions-to-property-prices\/","title":{"rendered":"Labor\u2019s 5 percent deposit scheme will add billions to property prices"},"content":{"rendered":"\n<p>The Albanese Government\u2019s First Home Buyers Scheme will add $55 billion to property prices over the next six years, according to ABS data analysed by the parliamentary library.<\/p>\n\n\n\n<p>Labor has lifted borrowing limits and income caps under the scheme as of today &#8211; a move which, according to media reports, Treasury modelling expects will inflate house prices.<\/p>\n\n\n\n<p>Newly compiled data from the Parliamentary Library shows a 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years. This amounts to an average of around $9 billion per year.<\/p>\n\n\n\n<p>The Greens say Labor\u2019s deposit scheme will turbocharge the housing crisis by driving property prices up, locking out first home buyers or plunging them into deep debt.<\/p>\n\n\n\n<p><strong>Greens housing and homelessness spokesperson Senator Barbara Pocock:<\/strong><\/p>\n\n\n\n<p>\u201cIn the midst of a national housing crisis, this scheme will add billions of dollars to property prices. How is this a solution? Labor is turbocharging the housing crisis.<\/p>\n\n\n\n<p>\u201cWe know this will drive up house prices and we know this will encourage people to buy houses they can\u2019t afford &#8211; it\u2019s reckless.<\/p>\n\n\n\n<p>\u201cUnder the Labor\u2019s First Home Buyers Scheme, the Government is encouraging people to take out loans on homes they can\u2019t afford. Taking out a 95% mortgage when property prices are eight times the average household income doesn\u2019t create stability \u2014 it sets first-buyers up for financial hardship, while the banks take the profits.<\/p>\n\n\n\n<p>\u201cIf Labor\u2019s goal is to make housing even more out of reach for everyday Aussies &#8211; it\u2019s certainly succeeded. This policy sounds good on paper but it\u2019ll only drive up house prices and plunge first-home buyers deeper into debt.<\/p>\n\n\n\n<p>\u201cIncreasing housing demand without dealing with the acute housing supply issue in this country just means more expensive homes.&nbsp;<\/p>\n\n\n\n<p>\u201cThe housing market is rigged for the wealthy. Until the government scraps the tax perks for wealthy property investors &#8211; the capital gains tax discount and negative gearing &#8211; and builds affordable homes, younger generations will be left on the sidelines.\u201d<\/p>\n\n\n\n<p><strong>Data:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The current value of dwelling stock owned by households in Australia is $11,108 billion ($11.1 trillion).<\/li>\n\n\n\n<li>A 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years.<\/li>\n\n\n\n<li>An average of around $9 billion per year (assuming a simple linear increase).<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Albanese Government\u2019s First Home Buyers Scheme will add $55 billion to property prices over the next six years, according to ABS data analysed by the parliamentary library. Labor has lifted borrowing limits and income caps under the scheme as of today &#8211; a move which, according to media reports, Treasury modelling expects will inflate &hellip; <a href=\"http:\/\/www.16news.com.au\/index.php\/2025\/10\/02\/labors-5-percent-deposit-scheme-will-add-billions-to-property-prices\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Labor\u2019s 5 percent deposit scheme will add billions to property prices&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-35195","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/35195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=35195"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/35195\/revisions"}],"predecessor-version":[{"id":35196,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/35195\/revisions\/35196"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=35195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=35195"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=35195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}