Homebuyers who are planning to apply for the federal government’s Home Guarantee Scheme over the 2022-2023 financial year will be able to choose properties with higher price tag with the new set of thresholds.
The adjusted price caps take into account the expansion of the Home Guarantee Scheme, which now has 50,000 placed distributed to specific sub-schemes: Regional Home Guarantee, First Home Guarantee, and Family Home Guarantee.
Here are the new price caps that would apply for the 2022-2023 Financial Year:
|
2021-2022 FY |
2022-2023 FY |
|||
|
Area |
Capital city and |
Rest of state |
Capital city and |
Rest of state |
|
NSW |
$800,000 |
$600,000 |
$900,000 |
$750,000 |
|
VIC |
$700,000 |
$500,000 |
$800,000 |
$650,000 |
|
QLD |
$600,000 |
$450,000 |
$700,000 |
$550,000 |
|
WA |
$500,000 |
$400,000 |
$600,000 |
$450,000 |
|
SA |
$500,000 |
$350,000 |
$600,000 |
$450,000 |
|
TAS |
$500,000 |
$400,000 |
$600,000 |
$450,000 |
|
ACT |
$500,000 |
$750,000 |
||
|
NT |
$500,000 |
$600,000 |
||
|
Jervis Bay Territory and Norfolk Island |
$550,000 |
$550,000 |
||
|
Christmas Island and Cocos (Keeling) Islands |
$400,000 |
$400,000 |
||
Expansion just a band-aid solution?
Wealthi co-founder Peter Esho said the lifting of price caps under the Home Guarantee Scheme appears to be only a band-aid solution to a wider housing affordability issue.
“The current scheme is limited in size and scope — the increase in price threshold is more an adjustment of outdated numbers they previously set.
“The supply crunch is likely to push up real estate prices even further and it seems like the current government has gone for a soft, band-aid solution rather than a serious attempt to address Australia's affordable housing problem.”
Still, first-home buyers are increasingly becoming more reliant on government schemes, according to a study by Great Southern Bank.
The study found that 72% of prospective first-home buyers want to use the government scheme support, compared to 54% who purchased in the past 5 years.
More than half of the recent first-home buyers said they made use of government schemes and financial support, while only 15% of first-home buyers said they did not.
The remaining share of first-home buyers have yet to apply for support but have plans to do so in the future.
Great Southern Bank CEO Paul Lewis said while the expansion of the scheme is a step in the right direction, more needs to be done to address the challenges facing homebuyers, particularly the first timers.
“If house prices are making it more difficult to buy, that just means all of us – government, banks, and other stakeholders – must work harder to help make home ownership a reality for younger Australians,” he said.
“We are talking to political stakeholders to advocate for a range of measures to benefit homebuyers, including support for lending for alternative housing forms such as tiny homes, container homes, and demountables.
“We also see the promotion of innovative home ownership models, such as shared equity and rent-to-buy schemes, playing a part in helping first-home buyers.”
—
Photo by @micheile on Unsplash
Collections: Mortgage News Great Southern Bank Post Collections
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