The Australian dream of homeownership is slipping away for some, despite government efforts. A month into the 5% Deposit Scheme, many homebuyers are left wondering if they'll ever get a chance.
Peter Njoroge, a 46-year-old father of three, embodies this dilemma. He's ready to buy a home in Werribee, a suburb in Melbourne's southwest, but the dream feels elusive. With a comfortable income of $130,000 from disability care, plus his wife's $40,000 earnings from childcare, the family brings in $170,000 pre-tax annually. Yet, like many, they struggle to save for a deposit due to high living costs and rent.
The federal government's promise to help working Australians like Mr. Njoroge into homeownership through the expanded 5% deposit scheme seemed like a beacon of hope. This scheme, with its unlimited places, higher price caps, and no income limits, should be a game-changer. But here's where it gets tricky: Mr. Njoroge, a casual worker, faces rejection from banks due to his employment status, a common issue for one in five working Australians.
"It's demoralizing," he says, feeling left behind as others get a head start. The scheme's inclusivity is questioned as it fails to cater to casual workers, a significant portion of the workforce. And this is the part most people miss: the scheme's impact on the housing market.
As demand surges, with buyers flocking to the scheme, home prices are rising faster than ever. Analysts predict a 0.5% to 15% price increase over six years, benefiting existing property owners the most. But for renters like Mr. Njoroge, the dream drifts further. He hopes for a shift in the conversation, focusing on better conditions for renters and long-term solutions.
Is the race to ownership creating a divide? The scheme's success in boosting demand is undeniable, but is it sustainable? As prices soar, the question remains: who truly benefits from these initiatives? Share your thoughts in the comments below.
