The financial market has always looked to the Australian Federal election to see what the results could mean for future economic and political growth of the country. The recent polls held on May 21, 2022 concluded with a win for the opposition and Labor Party leader, Anthony Albanese, defeating the incumbent Prime Minister Scott Morrison. 

But what does the recent election mean for people trying to invest, or are thinking about investing in Australia? Let’s take a closer look. 

Consumer Confidence and Market Sentiment 

The recent election saw a severe loss for the Liberal/National Coalition. Morrison conceded defeat and resigned as the leader of the Liberal Party, transferring the power to Anthony Albanese. 

According to the ANZ-Roy Morgan survey, consumer confidence increased by 1.7% at 90.7% after four consecutive weeks of decline since mid-April. Among the major states in Australia, confidence increased in Victoria, Queensland, SA, and WA, while consumer confidence decreased in New South Wales. 

Despite the fluctuating overall market sentiment, it remains that buying the right property is still a major financial decision that you shouldn’t rush into — no matter the political climate.

Let our professional mortgage brokers help you make a well-informed choice and see your options.

Help to Buy scheme: great news for home buyers

Prior to the elections, Albanese launched his campaign to the party’s new “Help to Buy” scheme. “Help to Buy” scheme aims to cut the cost of buying a home by up to 40% for 10,000 Australians per year. This scheme operates on the idea of a shared equity, where the burden of mortgage is split between the buyer and the government. 

In some parts of Australia, the Help to Buy scheme will lower the deposit required to buy a home. This means that some people will be able to take up ownership of a home with a smaller mortgage and smaller repayments. 

What we can expect from an Albanese Labor Government is to get access to an equity contribution of up to 40% of the purchase price of a new home for eligible homebuyers. In addition, we can also look forward to an equity contribution of up to 30% for an existing home. With this in mind, it’s always helpful to consult a professional mortgage broker to guide you in the process. 

Labor’s tax changes on properties

With the Labor party’s win, they promised to not bring in any changes to the taxes on investment properties. In addition, a general 50% discount for Capital Gains are also safe under the administration of Albanese in Australia.

The Labor government also announced that first home buyers will be eligible for assistance in the form of grants and low interest loans. They will need to make a minimum deposit of 2%, with an equity contribution from the federal government of up to a maximum of 40% of the purchase price of a new home and up to 30% of the purchase price for an existing home.

You’re eligible to the scheme if you:

• Are an Australian citizen, at least 18 years of age
• Are an individual earning less than $90,000 per annum, or a couple earning less than $120,000 per annum.
• Are living in a purchased home as your declared principal residence
• Don’t have any other land or properties, Australia or overseas
• Have a minimum down payment of 2% of the home price and can finance the rest through a standard mortgage.
• Are willing to pay for various associated costs, such as stamp duty, legal and bank fees, as well as ongoing property costs like rates, strata, and any other bills.

To ensure that you can qualify for the programs of the new Labor Government, feel free to contact us below.

Talk to us to know more

While the economic outlook for Australia is better with Labor at the helm, home buyers have to remain patient as it takes time for policies and initiatives to work themselves through the system. 

If you wish to apply for the Help to Buy scheme and need assistance around your eligibility, don’t hesitate to speak with us. Our specialist mortgage brokers will be more than happy to assist you in your home buying endeavour.