Prime Minister Scott Morrison this morning admitted that its first home buyer (FHB) deposit scheme, which has been matched by Labor, will drive house prices up. He also admitted that Australia’s property lobby is behind the policy. From The AFR:
Mr Morrison rejected suggestions the plan announced on Sunday, and quickly matched by Labor was a taxpayer-funded subsidy and said it won’t lead to an increased risk of purchasers getting into financial trouble.
“It enables them to open the door and actually turn the key on their first house,” Mr Morrison said.
“In a couple of years they will undoubtedly refinance and they will go through that process again. The equity in their home will build and they’re up, up and away. That’s where we want to get them to”…
Asked what modelling had been done, Mr Frydenberg said the government “had spoken to people in the sector.”
Fancy that: another fake ‘affordability’ policy written by the property lobby, and designed specifically to drive-up demand and prices.