Saving a reasonable deposit to buy a house is a tough challenge for first home buyers. Micheal Sukkar, a Liberal MP suggested during a Sky News interview, that the first step for young Australians to buy a house is getting a “highly paid” job. There are many government initiatives in place but the effectiveness of these schemes is under question.
The government has a “comprehensive package” that aims to assist first home buyers to afford a property over investors. This package eliminates stamp duty on houses up to $650,000, which relieves around $25,000 from your first home. The government also charge foreign investors higher duties and land taxes. These schemes are in place to assist first home buyers into the market.
These initiatives are a great idea, but they don’t help as much as you might think. The average Australian full-time salary is $74,724, or $1437 a week. Conversely, young Australians make $61,204 annually, or $1,177 a week, a substantial difference when an average Australian spends $869 a week, not leaving much to be deposited in savings to go towards a house. So, when MP Micheal Sukkar, stated that the government is “enabling young people to get highly paid jobs”, he wasn’t entirely correct, considering the average house in Australia is around $650,000. According to news.com.au, the average first-home …show more content…
With this much debt it is understandably difficult for a young Australian to save more on top of this amount.
According to economist Chris Richardson, it is better for young Australians to rent rather than buying a home. Although there are several schemes and initiatives to assist young people trying to get in the property market, home loans are far too expensive. It is almost an unachievable concept to buy a home in your 20’s in Australia, despite the governments schemes and
The government has a “comprehensive package” that aims to assist first home buyers to afford a property over investors. This package eliminates stamp duty on houses up to $650,000, which relieves around $25,000 from your first home. The government also charge foreign investors higher duties and land taxes. These schemes are in place to assist first home buyers into the market.
These initiatives are a great idea, but they don’t help as much as you might think. The average Australian full-time salary is $74,724, or $1437 a week. Conversely, young Australians make $61,204 annually, or $1,177 a week, a substantial difference when an average Australian spends $869 a week, not leaving much to be deposited in savings to go towards a house. So, when MP Micheal Sukkar, stated that the government is “enabling young people to get highly paid jobs”, he wasn’t entirely correct, considering the average house in Australia is around $650,000. According to news.com.au, the average first-home …show more content…
With this much debt it is understandably difficult for a young Australian to save more on top of this amount.
According to economist Chris Richardson, it is better for young Australians to rent rather than buying a home. Although there are several schemes and initiatives to assist young people trying to get in the property market, home loans are far too expensive. It is almost an unachievable concept to buy a home in your 20’s in Australia, despite the governments schemes and