First-time homebuyers in Sydney and Melbourne are unlikely to qualify for the first home loan deposit system because of the "ridiculously low" price cap of the homeowner. real estate, said an expert.
The federal government has recently published the project price caps, setting maximum property values ??of $ 700,000 in Sydney and $ 600,000 in Melbourne.
The price caps set in both capitals are low enough that most buyers will not qualify or end up buying a cheap home, said Zippy Financial Senior Manager and Broker Louisa Sanghera.
"What worries me is that the project was clearly well-intentioned.Sydney and the future Melbourne owners were top of their concerns because of the high prices of real estate in both cities "she said.
CoreLogic figures show that the median price of real estate in Sydney is about 920,000 USD and the median unit price of 720,000 USD. In Melbourne, according to the index, the median house price is $ 751,000 and the median unit price is $ 558,000.
"The ceiling prices were set well below the median price of housing in Sydney and Melbourne, the median unit price in Sydney being even higher than the maximum price allowed under the program," said Sanghera.
Read also: Will the deposit regime boost demand for housing?
However, in other capitals, the price cap is closer to the median housing price and even well below the median unit price.
"It seems indeed that the government has just chosen a price from nothing for Sydney in particular, because that does not seem to reflect the reality of the market – especially now that prices are firmly there again," he said. Sanghera said.
Sanghera said the government should consider raising price ceilings to achieve the program's goal.
"They should seriously consider raising the price ceilings in Sydney and Melbourne to be more realistic with respect to current market conditions and to significantly increase the number of collateral offered," she said. declared.
The table below shows the current price caps of the scheme:
Capped Prices under the First Mortgage Deposits Program
NSW
VIC
QLD
WA
SA
TAS
LAW
NT
City or large regional center
$ 700k
$ 600k
$ 475k
400 000 USD
400 000 USD
400 000 USD
US $ 500,000
$ 375k
Other Zones
$ 450k
$ 375k
400 000 USD
$ 300k
250,000 USD
$ 300k
Top suburbs:
Mortdale
,
werribee
,
sth toowoomba
,
Padbury
,
balga
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