Coalition pledges never-ending first home subsidies

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Housing Minister Michael Sukkar was interviewed by Sky News yesterday where he signaled that the Morrison Government would indefinitely subsidise first home buyers’ property purchases:

“10,000 places [in the FHB deposit subsidy scheme] have been released today. This scheme allows people to purchase their first home with a deposit of as little as 5%. One of the big barriers we find for FHBs is that banks are requiring a deposit of 20%. In places like Sydney that can take up to 10 years to save. In places like Melbourne up to eight years. So the First Home Deposit Scheme brings that forward by many, many years… It also saves them lenders’ mortgage insurnance…

“My advice would be: If you’ve been thinking about purchasing your first home, if you’ve put together a modest deposit, you might be able to press the button with the assistance of the Morrison Government…

“I expect that this will be a feature of the Morrison Government’s policy prescription going forward for helping people getting their first home”…

So there you have it straight from the horses mouth. FHB subsidies are now a permanent feature of the Coalition’s fake housing affordability policy.

The Coalition has to generate buyers for property investors to hand-off losing assets:

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Might as well summon thousands of FHB patsies.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.