New data released by the Housing (Supply) Minister shows that the Federal Government’s First Home Loan Deposit Scheme is already helping millennial’s achieve their home ownership aspirations and giving a boost to regional areas.
With 34% of applicants aged between 25-29 and 76% of applicants aged between 18 and 34, millennials are making up the largest share of people looking to benefit from the new First Home Buyer Scheme. So far, 2,055 first home buyers have applied for the loan. The loan is giving potential buyers who were previously shut out of the market a chance to get their foot in the door.
What is particularly interesting is where the first home buyers are looking to live. A large number of applicants are applying with areas outside of major cities like Sydney, Brisbane and Melbourne in mind. This may partially be due to the house price cap, however the move is positive no matter what the reason.
The house price cap in these locations is on average around $400,000 and even then the data shows most borrowers are seeking approval to buy houses below that maximum price.
Free standing houses are the most popular purchase with the scheme, which tends to suggest people are buying existing homes, rather than new homes. This is an interesting trend, however it may change in coming months as more new and off-the-plan projects are released to the market, so the government is currently not taking any measures to incentivise new/off-the-plan housing further.
No doubt this strong early take up will encourage the Government to think about increasing the number of places for the scheme in 2021.