Will the major parties’ policies solve the housing crisis? Patricia Karvelas and Alan Kohler discuss the two parties’ housing policies ahead of the election.
The Coalition’s policy will allow first home buyers to deduct interest payments on the first $650,000 of a mortgage against their taxable income for five years, provided you continue to live in that home for that period. This policy will be available to individuals with a taxable income of $175,000 or less — and joint applicants earning a combined income of $250,000 or less.
Independent economist Saul Eslake told me yesterday it was a “candidate for dumbest policy decision of the 21st century (rivalling the WA GST deal)”
Eslake believes the new Labor housing policy will also drive up house prices, despite housing minister Clare O’Neil declaring it would not have a significant impact on house prices.
A re-elected Albanese government would allow all Australian first home buyers to purchase with a 5 per cent deposit, avoiding lenders mortgage insurance, in an expansion of an existing scheme. The government will also commit $10 billion to build 100,000 new homes exclusively for first homebuyers.
