Four Ways the Coalition Wants to Boost First-Home Buyers’ Chances

Shadow Housing Minister Michael Sukkar has emphasised that helping first-home buyers enter the property market is a top priority. As the housing market struggles with skyrocketing prices and high interest rates, the Coalition’s proposed policies aim to give first-home buyers the support they need to get their foot on the property ladder sooner.

In an exclusive interview with realestate.com.au, Sukkar highlighted four key strategies the opposition plans to implement to boost the odds for first-home buyers: faster savings for deposits, boosting housing supply, cutting migration and regulations, and making home loans more accessible.

Key Highlights of the Coalition’s Plan

1. Saving for a Deposit – Using Superannuation The Coalition proposes a plan that would allow first-home buyers to access up to $50,000 from their superannuation fund to put towards their first home deposit. While this idea has raised concerns in some quarters, particularly from the superannuation industry and economists worried about rising home prices and future retirement savings, Sukkar insists this move will help people save faster. The money withdrawn would need to be paid back into the superannuation fund when the home is sold.

2. Increasing Housing Supply – $5 Billion Infrastructure Fund To tackle the housing supply crisis, the Coalition has pledged to invest $5 billion into housing infrastructure, focusing specifically on greenfield sites (undeveloped land on the outskirts of cities). These areas are typically where first-time buyers purchase homes. The fund will cover critical civil infrastructure like water, power, and sewerage. What sets this plan apart is that it will also involve the private sector, giving developers, state, and local governments access to funding.

3. Reducing Migration and Red Tape In an effort to manage housing demand, the Coalition intends to make significant cuts to immigration. The plan includes reducing permanent migration numbers from 185,000 to 140,000 in the first two years and cutting foreign university student numbers. This move is projected to free up as many as 40,000 homes in the first year alone, and over 100,000 homes over five years. The Coalition also plans to impose a two-year ban on foreign investors and temporary residents from purchasing existing homes. On the construction side, they propose freezing changes to the National Construction Code (NCC) for 10 years, reducing red tape for homebuilders.

4. Making Home Loans More Accessible While details on this initiative remain sparse, Sukkar has hinted that the Coalition will make home loans easier for first-time buyers. The opposition is expected to announce measures aimed at improving serviceability and access to finance, making it simpler for buyers to secure a home loan. A recent inquiry led by Senator Andrew Bragg suggested that regulators could reduce the serviceability buffer for home loans, a move that would make it easier for buyers to get approved. However, critics warn that loosening the buffer could increase risks for borrowers.

Summary

The Coalition’s housing policies focus squarely on easing the pathway to homeownership for first-home buyers. From allowing access to superannuation funds to faster deposit savings, to investing in housing infrastructure, the opposition aims to tackle both supply and demand issues. By reducing migration and cutting red tape, they hope to free up more housing stock for Australian buyers. The promise of improved access to home loans and changes to financial regulations may also provide relief for those struggling to secure a mortgage.

As the housing affordability crisis continues, these bold policy proposals could make a significant difference for first-home buyers—if they come to fruition. With the next election on the horizon, all eyes are on the Coalition’s plans to shape the future of housing in Australia.

Source: REA