• Tristan Angelini

How the 2019 Elections Affect Housing Affordability


One of the biggest issues that Australia is facing nowadays is the housing unaffordability. The main problem right now among residents is how expensive it is to buy residential property and even with the price drops, it’s still impossible for many to save enough to buy a house. Generally, living in Australia is expensive. Electricity bills are through the roof and this brings a lot of damage to the household funds. People have blamed this phenomenon on one thing– wages. It’s been pointed out that an increase in wages has not occurred for over five years now and it’s such a huge problem for lower-income families.


The recently concluded Australian elections resulted in a liberal party, which I find personally good not just for the investors but also for the economy. I have recently talked about how the Labour changes would mean bad news for the country because of their plans to abolish the negative gearing for investors. This plan would have been in full effect from January 2020. At the same time, all capital gains tax from investment projects after this date will be cut down into half. Those that have bought property beforehand still had to attract negative gearing.

The Coalition maintains that the policy Labor was lobbying would push up people’s rent, which would contribute to the existing housing problem especially in the capital cities. Now that the liberal party has gained the trust of most Australians, what does this mean for the housing unaffordability issue?


According to experts, Coalition winning over Labor should stabilize housing conditions. The labor’s threat to the changes in terms of taxes became such a huge worry among investors, so with the liberal party winning, investors will return to the market. There is also issue with credit which is something first-time homebuyers have really been finding difficult to solve. Housing stress which happens when rent or mortgage repayments are 30 percent than a buyer or a household’s income. This has been going on for some time now. The Coalition’s victory would most likely improve the credit accessibility according to market experts.


The Coalition proposed a First Home Deposit scheme wherein would be buyers are allowed to loan up to 15 percent of the price of the property they are going to purchase. However, there’s a catch. This would only be allowed if they have saved up five percent for themselves. This could mean that a first time home buyer might be able to get a $125,000 discount a year. Unfortunately, some experts say that this scheme would most likely raise the homeownership up a little bit for many reasons. A lot of first-time homebuyers are not worried about the deposit but whether they would even be qualified in the first place. Technically, this is another issue that the Coalition would be up for.


Many experts are saying that the real problem with the Coalition’s scheme is how they are trying to fix the housing affordability issue with an increase in housing demand. However, there are risks involved and it’s not realistic to assume that nobody will be affected along the way. I believe that there are matters that need to be addressed. Let us hope for the best.

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