Land down under

Getting your Trinity Audio player ready...

What happens when the government promises to pay 3/4 of your deposit on a new home? A surge of first-time home buyers, that’s what! A new program in Australia is accomplishing just that.

The First Home Loan Deposit Scheme allows first-time buyers to come up with only 5% of their deposit. The remaining 15% comes from tax-funded government programs. After that, the mortgage is up to the homeowners.

This scheme – does anyone else think it is odd to use the word “scheme” for a government program? Anyway, the scheme has resulted in a 26% increase in first-time buyers in the marketplace. The government put this into place as home prices continue to rise with the median home price in Sydney hovering around $1 million. Meanwhile, interest rates are at an all-time low of 0.75% sending Australians the signal: If you’re going to buy, now is the time!

Share this article

Related Articles

Join the mailing list

Get the daily email that makes reading the investment news actually enjoyable.

Scroll to Top