Both party leaders have pledged to launch plans to help first-time home buyers, each claiming that their side can better implement the plan.
On May 12, Prime Minister Morrison (Scott Morrison) announced a new initial purchase plan, the Australian news agency reported. Government will provide guarantee, a loan to first-time buyers, allowing buyers to buy homes for a down payment of 5 per cent, well below the conventional 20 per cent. The Labour Party has promised to launch a similar plan.
However, Morrison said Labour plans to abolish another system that would prevent people from calling pension individual subscription fees for the first time. He also said that if the Labour government implements its proposed housing tax relief reform, house prices will also fall.
"I want to see people stay in the market when they first buy a home and keep the value of the real estate they buy," Morrison told journalist in West Sydney on May 13.
Asked if government's plan would push up house prices, Morrison did not respond positively, saying: "it's hard to say. But I know that Labour's housing tax will force house prices to fall."
Labour, on the other hand, said it quickly announced that it would follow the government simply because the plan was moderate and still wanted to see the details of the government plan.
Labour leader (Bill Shorten) (Bill Shorten) said government's plan was not strong enough; his proposed negative tax deductions and capital income tax reforms were more necessary. "if you want to solve the housing burden problem, it's only part of the bigger layout," he told journalist on the central coast of the new state. That's why we need to reform the domestic fair arena -, real estate investors are currently receiving subsidies from Morrison government to buy sixth and seventh units. "
Government's plans are supported by housing industry groups, including (Property Council), the real estate committee, and (Master Builders), the builder's association.
RateCity, a financial comparison site, calls for caution when choosing a 30-year loan with a low down payment. The website said that the same purchase of a 500000 home, the 5 percent down payment may end up paying A $50, 000 more interest than the 20 percent down payment. (Zhai Longwei)
