Charisa Bossinakis
As the property market is more competitive than ever, with prices surging at an all-time high, rest assured, even Prime Minister Scott Morrison had a ‘hard’ time purchasing his first home.
Ah politicians… they’re just like us!
When speaking at a conference about expanding the first home buyer’s scheme, it seemed to be a subject that pulled on the PM’s heartstrings as he too faced difficulty purchasing a home during the mid-90s in Sydney, The Herald Sun reports.
According to The Australian Financial Review, Mr Morrison’s first property was a 1960s-era block on Pacific Street, and later that year, he purchased a California bungalow in Bronte for $330,000.
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“The hardest thing to do when you’re buying your first home, I remember this when Jenny and I were buying our first time, it was, it was hard back then, I believe it’s harder now, was the deposit you need to pull together, and that was a 20 percent deposit (back then),” he said.
The first home buyer’s scheme allows anyone buying their first property to put down a five or two percent deposit, which the PM said would help ‘massively cut down’ what people pay upfront.
However, those not eligible for the scheme are still expected to pay a 20 percent deposit.
The program was meant to be discontinued in June, but the Federal government is extending the scheme as concerns grow for affordable housing.
The scheme can only be accessed for homes worth up to a certain amount, depending on the area.
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In Melbourne, the price cap is $700,000, and in Sydney, it's $800,000.
The Price caps will also remain at $125,000 for singles and $200,000 for couples.
Mr Morrison also added: “Well, let me point out the program to you again, 20 percent down to five per cent. And if the prices are rising, it’s five per cent or 20 percent of the increased price. So the ability to cut that down by 15 per cent makes all the difference.”
SBS also reported that Treasurer Josh Frydenberg said the government would establish a scheme for those living in regional towns as well.
"We're also supporting those in our regions, with 10,000 places per year under a new Regional Home Guarantee to assist eligible home buyers purchase or construct a new home in regional areas."