The 2022 election results shook things up and the Labor Party with Anthony Albanese at the helm has now stepped up to take over the running of the country.
It was certainly an interesting campaign but even with the Liberals dangling the major carrot of home buyers being able to tap into their superannuation, change was in the air.
Now the decision is made, what will it mean for property over the rest of the year?
Some buyers will receive a helping hand if the Albanese government holds strong on its promise to contribute up to 40 per cent of the price of a new home and up to 30 per cent on an existing home for around 10,000 eligible parties per year.
This ‘Help to Buy’ scheme is a ‘shared equity’ arrangement. Eligible buyers will save on Lender’s Mortgage Insurance and will only need a 2 per cent deposit. However, the Government will be a part owner of their home. There is the potential to ‘buy back’ a share of the property if the buyer’s income increases.
The scheme will apply to a lucky few in Brisbane but the purchase amount is capped at $650,000. To be eligible, you can earn up to $90,000 as an individual and $120,000 as a couple.
There is also the promise of a $10 billion Housing Australia Future Fund. This is forecast to build 30,000 affordable housing properties over five years. The promise includes:
There isn’t a great deal of information about where these homes will be but you will find more information on the ALP website.
Outside of Brisbane, there is a push to support regional housing affordability. Labor’s Regional First Home Buyer Support Scheme aims to help 10,000 first-home buyers in regional areas to buy a home by providing guarantees of up to 15 per cent of the property’s price, only requiring a 5 per cent deposit and removing the need for Lender’s Mortgage Insurance.
The economy was a hot topic during the leadup to the national vote and while the people who rule the country definitely impact our financial future, the change in leadership is unlikely to have an immediate influence on interest rates or inflation. This is the first time in my real estate career I haven’t seen an immediate holt during an election.
The May interest rate rise will be more of a deciding factor. This jump is likely to be followed by further increases, which will serve to ‘flatten’ the property market.
When I say flatten, I don’t necessarily mean ‘depress’. This is more about house prices stabilising after two years of significant growth. If you’re looking to sell between now and Christmas and you purchased your home prior to 2019, you are still looking at substantial profits.
With this being said, major economic voices are predicting a slowdown next year. CBA, for one, “is predicting prices nationally will flat line by the end of the year and drop by 8 per cent in 2023.” While I always take these types of statements with a grain of salt, I’d say plan your sale sooner rather than later if you can.
In terms of the Government home buyer incentives, because these are capped and limited to lower income earners, they are not as likely to have the flow-on effect of an across-the-board jump in prices like the first home buyer scheme.
Right now, it’s back to business as usual. Property prices in Brisbane remain healthy, buyers are still out and about and the cooler winter months are a good time to prepare your home for sale, regardless of which party is in power.
I hope you enjoy the read.