The Impact of the Federal Government’s Proposed Help to Buy Scheme
The federal government’s proposed Help to Buy scheme is set to have a significant impact on the Victorian real estate market. The scheme, which aims to increase home ownership among first-home buyers, would provide a 10% grant towards the purchase of a new home.
Strong economy and government incentives drive Australian housing market growth.
The Australian Housing Market: A Year of Growth and Challenges
The Australian housing market has experienced significant growth in 2024, with Perth, Adelaide, and Brisbane leading the way in terms of annual capital growth. This upward trend has been driven by a combination of factors, including low interest rates, government incentives, and a strong economy.
Key Drivers of Growth
Housing costs outpace income, leaving low-income households struggling to make ends meet.
The State of Housing Affordability in 2024
Housing affordability has been a pressing concern for many years, and the situation has only worsened in recent months. As of the end of 2024, it takes more than half of the median household income to service new loans, making it increasingly difficult for individuals and families to afford a home.
The Impact on Low-Income Households
Low-income households are disproportionately affected by the rising cost of housing. These households often have limited financial resources and are forced to make difficult choices between paying rent or mortgage payments, utilities, and other essential expenses. The burden of housing costs can lead to financial stress, reduced spending on other necessities, and even homelessness. Key statistics: + 70% of low-income households spend more than 30% of their income on housing costs.
