A mother from Dulwich Hill in Sydney’s Inner West expressed her frustration over the challenges of securing a home, stating she needs to borrow between $800,000 and $1 million for an apartment in her neighborhood. Despite having a $60,000 deposit, she feels that the dream of homeownership is out of reach. When she approached Westpac for a loan, the bank suggested she find ways to increase her annual income, but as a full-time single mother, she finds this unrealistic.
Her concerns were echoed in the context of recent housing promises made by both the Labor Party and the Coalition, which she described as “out of touch.” During their campaign launches over the weekend, both parties targeted first home buyers, aiming to offer additional support.
Labor announced that, if re-elected, it would allow all first home buyers to purchase with just a 5% deposit, expanding an existing scheme. They plan to remove household income limits while maintaining caps on eligible property values, which would be set close to the average home prices in each state and territory’s capital. Additionally, Labor is committing $10 billion to build 100,000 new homes specifically for first home buyers.
Meanwhile, the Coalition proposed a policy enabling first home buyers to deduct interest payments on the first $650,000 of their mortgage from their taxable income for the first five years, provided they live in the home during that period and meet certain income thresholds—$175,000 for singles and a combined $250,000 for joint applicants.
As political leaders make promises aimed at easing the housing crisis, many prospective buyers like the Dulwich Hill mother remain skeptical about whether these measures will truly make homeownership attainable.
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