Housing Minister Michael Sukkar warned that Australian housing prices may rise very much. He urged first-time buyers to hurry to buy a home before the government implements the First Home Loan Deposit Scheme next year. At the time of his remarks, the government has completed the finishing of the first home buyer’s down payment loan program. Morrison called the plan an important commitment in the election. From January 1st next year, some first-time buyers can buy a house for only 5% of the down payment. Minister Sukar said: “If you have the opportunity to enter the real estate market before the start of the plan next year, then you should hurry to buy a house, because I think the Australian house prices have begun to slowly recover. Now people who buy a house will not regret today. The re-elected Morrison government has injected more confidence into the market. We see that the real estate market in Melbourne and Sydney has shown signs of recovery in the last quarter. The Reserve Bank of Australia has cut the cash rate twice, APRA. The loan assessment rate has also been lowered, which will promote the accelerated recovery of the Australian real estate market.”
A report released by CBA (Commonwealth Bank, Federal Bank) on July 17th shows that the number of first-time buyers who think they can own a house in Australia is as high as 91%, much higher than last year’s 80%. . Independent real estate economist Andrew Wilson also said that for first-time home buyers, the economic fundamentals may never be as good as they are now: the current cash rate is a record low of 1% (expected to be further reduced in the future), the government also A stamp duty concession and a first home buyer down payment loan program to be implemented next year are available. Under the plan, eligible first-time homebuyers with at least 5% of deposits will be able to ask the government to provide guarantees for the remaining 15% of deposits they can’t afford, and not to pay thousands of dollars in mortgage insurance to lenders. Singles with a income of no more than 125,000 yuan and couples with a total income of no more than 200,000 yuan are eligible to apply. Although the current total number of people applying for this program is only 10,000, Mr. Sukkar did not rule out the possibility of expanding the project. The government is still considering whether to impose an upper limit on the number of applicants in each state and region, or to follow the “first come, first served” principle. There is also a limit on the amount of money purchased by first-time buyers who have participated in the purchase plan. Minister Sukkar said: “The setting of this price ceiling needs to take into account the price level of different regions. We are currently studying all the options to ensure that people can enjoy the plan as fairly as possible. I suggest that buyers should save as much as possible. More money. Although this is a down payment loan plan for those with a deposit ratio as low as 5%, if your deposit is higher, this plan will not exclude you.”
Mr. Wilson, chief economist at My Housing Market, said that especially in Melbourne, housing prices are bottoming out, but even though buyers are active, there are few sellers. He expects house prices to grow at an annual rate of 3% to 5% in most of the better capital cities. He said: “For the first-time buyers, the current environment is very good. They can enjoy stamp duty concessions when buying houses in NSW and Victoria, and the value of 600,000 yuan in Victoria and 650,000 yuan in NSW is not subject to stamp duty. We have seen a surge in first-time home buyers. Although house prices are stabilizing, we have seen some growth – the number of first-time home buyers has increased in the past few months, which may be reflected in It is a good time to enter the market.” On July 17, Victoria’s Finance Minister Tim Pallas said that the Victorian real estate market is recovering. Since the government introduced stamp duty reduction measures two years ago, the number of first time home buyers has increased by 10 %. He said: “There was a time when we didn’t know when the house price would bottom out, but now we can be sure that the house price has bottomed out. I am not saying that we have passed the worst period, but all the data shows us. The real estate market is improving.” Minister Sukar said he promised to start the first home buyer’s down payment loan program on January 1st next year and insisted that the plan would not distort the Australian real estate market. The program aims to reduce the time it takes to buy a home from ordinary households (9 to 10 years) by at least half. Minister Sukkar stated that he will introduce legislation at the spring meeting and expects that the bill will be passed in Parliament before the end of the year. The National Housing Financial – ance and Investment Corporation, which will receive $500 million in capital injections, will manage the plan and they will also work with private lenders. He said: “My current thinking is that we are eager to ensure that smaller banks can give priority to loans. There is no doubt that the four major banks will also participate.” NAB (National Australia Bank, National Bank) second quarter Residential property surveys show that housing prices are basically flat next year, and real estate industry professionals are increasingly optimistic about the Australian property market. The report writes: “Low interest rates, fiscal stimulus measures, the elimination of tax policy concerns, and the relaxation of macroprudential policies seem to have contributed to this. In the end, the difference between the peaks of the Sydney and Melbourne property markets to the trough seems to be 15% and 11%.”