The votes have been cast and it’s clear Labor will hold the reins of federal government for another 3-year term. We look at what this may mean for first home buyers and current home owners.
As the election dust settles, it’s time to get back to business as usual.
But there could be a few changes on the horizon depending on whether you’re planning to buy a first home or you’re already a home owner.
But first, where is the property market currently at?
As we approach the mid-point of 2025, the property market is still notching up gains.
Home values nationally rose 0.3% in April, taking Australia’s median home price to a new record high of $825,349.
For that amount, mustering up a 20% deposit calls for savings of around $165,000.
But you may be able to buy with less under a number of Labor election promises and initiatives.
5% deposit scheme to be expanded
The Home Guarantee Scheme (HGS) already offers an opportunity for eligible first home buyers to get into the market with just a 5% deposit and zero lenders mortgage insurance.
From January 2026 the scheme will be expanded.
Every first home buyer will be eligible to purchase a home under the HGS, with income caps for applicants to be scrapped, property price limits to be increased, and the removal of caps on the number of people who can apply for the scheme each year.
Increased supply of new homes just for first home buyers
CoreLogic points out that first home buyer incentives often do very little to improve housing affordability.
In fact, they can push up property prices by boosting demand.
A potential long-term fix is to build more houses.
Labor has promised to help ease pressure on demand by investing $10 billion in building up to 100,000 homes reserved exclusively for first home buyers.
The Grattan Institute crunched the numbers, finding that if all 100,000 homes are built, house prices could soften by up to 2.5%, potentially offsetting any possible price increases from the expanded Home Guarantee Scheme.
Help to Buy shared equity scheme
The Albanese government has pledged to go ahead with its Help to Buy scheme for first home buyers.
The idea is that the federal government will chip in as much as 40% of the cost of a first home while buyers need as little as a 2% deposit.
Help to Buy has been a slow burn, having been part of Labor’s 2022 election platform. The delay in its rollout is partly due to each state and territory government needing to pass its own legislation to make Help to Buy a reality.
It’s a case of ‘watch this space’ to know when the scheme will finally get off the ground in your state or territory.
Current home owners can soon access cheaper batteries
One in three Australian households now have solar, but only one in forty households have a battery.
That could soon change, with current homeowners being able to access the Cheaper Home Batteries Program from 1 July 2025.
It’s hoped that the subsidy program will push down the cost of buying and installing a household solar battery by 30% – or about $4000 per battery – and help households reduce reliance on the grid.
The government estimates that homes with existing rooftop solar could save up to $1,100 on their annual power bill.
Talk to us to know how you could benefit
With a range of schemes and benefits up for grabs, it can be tricky to work out what you may or may not be eligible for.
From buying a first home, to making your current home more eco-friendly, we can guide you through the funding solutions to help you achieve your property goals.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
