Experts and potential buyers react to election housing promises

ABC NEWS (Australia)

Both major parties say they have policies that'll make it easier for more people to buy their first home, but the paths chosen to make that happen look very different.

Transcript

00:00Sydney renter Chloe Angel has a stable middle income job, but she still can't afford to buy a house.

00:10I have been saving for most of my adult life and I would love the opportunity for secure housing through buying a home.

00:17Final! All done!

00:19To boost home ownership, the major parties are spruiking very different plans.

00:24The Coalition would allow first home buyers to tax deduct interest payments for the first five years of a mortgage.

00:31But the interest deduction only applies on interest paid on up to $650,000 of their mortgage.

00:38Only individuals earning up to $175,000 per year or couples earning a combined income of up to $250,000 will be eligible.

00:49The tax deductibility of the interest paid on a home loan for the Coalition on average will save somebody $11,000.

00:56Labor is promising to scrap the income test for its existing first home buyers scheme, allowing them to purchase with only a 5% deposit.

01:06Economists say both policies will push up house prices.

01:10The biggest winners out of both policies will be those who already own homes.

01:16I'm not convinced that either policy will change anything for me.

01:20Some economists say the better way to help first home buyers would be to scrap federal government tax breaks for property investors,

01:28which the Parliamentary Budget Office estimates will cost roughly $12 billion in foregone revenue this financial year.

01:37But none of the major parties want to talk about that in this election campaign.

01:42Making the dream of home ownership as complex and elusive as ever.

01:48The

01:49VA

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02:04Find

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02:06Oh

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