Some of the nation’s most well-off homes are expected to be hit by the worst housing crisis since the 1930s, with the Government’s first major plan for a house price crash hitting the headlines.
The Federal Government has promised a price freeze on the first three years of a house purchase and is planning to extend it beyond five years for a total of four.
It is expected to give the average home buyer a 20 per cent price discount over the next five years, while average property investors will get a boost of $100,000 per year.
However, it will also mean a rise in the costs of owning a home for most people, especially those with lower incomes.
The Government has also unveiled measures to help lower income Australians with their homes, including giving them $100 cash grants to help them buy a home.
It also has plans to provide grants to buy a house for people earning less than $55,000.
A $20 per week benefit is also due to be introduced to help those with low income buy a property.
“This is a very significant step towards reducing the housing affordability crisis,” Treasurer Scott Morrison said.
The Government says that the Government has spent more than $100 billion on housing since the crisis started in 2008, and the plan will provide more than a quarter of a billion dollars in savings over the lifetime of the scheme. “
If you can make that investment and save up the cash to buy, you can get the money in your pocket for your child’s education, and you can afford your child to go to university.”
The Government says that the Government has spent more than $100 billion on housing since the crisis started in 2008, and the plan will provide more than a quarter of a billion dollars in savings over the lifetime of the scheme.
“These new measures will deliver $1.5 billion a year in savings for Australians,” Mr Morrison said in a statement.
“We know that some people will struggle to find a home to buy but the Government will be making it easy for people to get into the market.””
If you are one of the many Australians who have made the hard decision to buy and are in a position to do so, you will be able to get a mortgage, access some help with mortgage repayments and even access some tax relief to help support your savings. “
We know that some people will struggle to find a home to buy but the Government will be making it easy for people to get into the market.”
If you are one of the many Australians who have made the hard decision to buy and are in a position to do so, you will be able to get a mortgage, access some help with mortgage repayments and even access some tax relief to help support your savings.
“I can tell you from personal experience, this is an incredible opportunity to start building a more comfortable and secure future.”
‘Sensible’ plan to make changes The Federal Treasurer has said that the measures will make Australia more affordable for home buyers.
“In the long term, the changes will help lower-income Australians to afford the housing they need to secure a good home,” Mr O’Connor said.
The measures come as the Federal Government is preparing to introduce a new mortgage credit guarantee for the first time.
The guarantee will allow people to borrow up to $300,000 in their first five years to buy an average home, regardless of income.
“It’s a sensible approach to provide more affordable mortgage support for those in the middle and lower income groups,” Mr Newman said.
The scheme will be available to home buyers for the whole of 2017, but will only be available for the next two years.
In addition, the Government is launching a new home affordability plan to help low income Australians buy their first home.
The new plan is designed to provide a $500 monthly mortgage payment to the first $100 in debt for those who can afford to buy their home.
Low income Australians will be given up to an additional $50 per month of mortgage interest income tax relief, and up to a further $100 per month to help cover other mortgage repayements.
The program is due to start in September.
Read more about housing,home prices,solutions to the housing crisis:Read more Home affordability plan: The Government says the new measures are designed to help reduce the housing price bubble.
The measure will help low-income earners get into their first property, and will allow them to access some of the money they need for their child’s school fees, while helping to lower the cost of renting a home at the same time.
It also has measures to provide incentives for the construction of new homes for low- and middle-income families.
However, the scheme will only apply to the purchase of a property worth more than the median household income, which means it will only help to buy homes worth $150,000 or more.
The plan is expected in the next fortnight.
More to come.