First-home buyers deposit scheme a good idea says Property Council

Closing the deposit gap is a vital part of dealing with housing affordability says the Property Council of Australia.

“With record low-interest rates, we know that first home buyers are meeting their mortgage obligations. However, the real challenge is meeting the deposit gap”, says Glenn Byres, Chief of Policy and Housing for the Property Council of Australia.

"A smart scheme that makes a contribution to resolving the challenge people face in building towards a deposit has the potential to be a plus.

“With each passing year, it is getting harder for first-home buyers to save for a deposit. Fifteen years ago, it took 86% of an average householder’s annual income to pay the deposit on an average house. Today, this has reached 139%.

“A properly constructed and well targeted first-home buyers deposit scheme can help provide the right incentives for singles and couples to sensibly build the savings needed to crack the market.

“A first-home buyers deposit scheme is a better alternative than letting people access their superannuation, nor should it be considered a substitute for superannuation – that would simply replace one problem with another."

“In addition to a salary sacrifice first-home buyers deposit scheme, the Government should consider embracing the Keystart scheme in Western Australia which has put over 86,000 people into their first home.”

Media contact:  Paul Ritchie |  E pritchie@propertycouncil.com.au