Submission to the Economics Legislation Committee - National Housing Finance and Investment Corporation Amendment Bill 2019 [Provisions]
The Property Council of Australia welcomes the creation of the Low Deposit Home Loan Scheme (the Scheme). This occurs against the positive backdrop of the Government protecting current negative gearing and capital gains tax settings.
The attached submission sets out how the Government can provide further direction to NHFIC to improve the design of the Low Deposit Home Loan Scheme, in the event of unforeseen outcomes, to address the deposit hurdle for first home buyers, further boost support for construction sector jobs and economic growth and simplify the administration of the Scheme by:
- Should the Scheme appear likely to be oversubscribed before 30 June 2020, targeting an additional 10,000 buyers per year – for newly built homes only and for the first two years only, to stimulate the economy and limit any wider market impacts;
- Developing a loan product that is suitable for new dwellings, recognising that the loan process, timeline and product for purchasing off-the-plan apartments or house & land packages differs to the loan process or product for established dwellings; and
- Aligning dwelling price caps with pre-existing state or territory price caps or first home buyers grant programs in the respective state or territory to maximise the impact of the Scheme and reduce the administrative complexity of setting dwelling price limits at a Federal level.