First home buyers rush deposit subsidy scheme

Data has been released on the Morrison Government’s first home buyer (FHB) deposit subsidy scheme, which reveals that more than half of all spots have filled in the second tranche, which opened in July:

About 4500 spots are pending and more than 1000 application certificates have already been approved…

Minister for Housing and Assistant Treasurer Michael Sukkar said the scheme has allowed “Australians to get into a home of their own sooner”.

“Helping even more Australians get into their first home with a deposit of as little as five per cent is helping set them and their families up for a successful future,” he said.

“The scheme has also been vital in driving first homebuyer confidence during the COVID-19 pandemic”…

Don’t worry about missing out. Michael Sukkar last month confirmed that the Government would very likely expand its FHB deposit subsidy scheme in the October Budget:

Mr Sukkar told The Australian the government was “committed to doing all we can to help Aust­ralians get into a home of their own sooner”.

“By delivering our loan guarantees, we are helping Australians cut years off the time it takes to save, as first-time buyers can now purchase a home with a deposit of as little as 5 per cent,” Mr Sukkar said. “The data shows buyer confid­ence is being maintained with the recently released tranche of guarantees being eagerly secured­.”

The Australian understands the surge in applicants is likely to trigger an expansion of the loan guarantee program ahead of the October budget…

Thus, FHB subsidies are now a permanent feature of the Coalition’s fake housing affordability policy.

Clearly, the Coalition has to generate buyers for property investors to hand-off losing assets:

Might as well summon thousands of FHB patsies.

Leith van Onselen
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