The Federal Government’s Home Guarantee Scheme opens the door for more first-home buyers to get into the market with just a 5% deposit. But the flow-on effects for property investors are where the real story lies.
SHORT TERM PRICE PRESSURE
Government modelling suggests the expanded scheme will lift property values by just 0.5 per cent over six years. But the Insurance Council of Australia disagrees, warning prices could jump by as much as 10% in the first year alone in some areas.
For investors, that means stiffer competition and higher entry prices in the suburbs first-home buyers are chasing. While that creates challenges, it also shows the strength of property as an investment class: demand isn’t slowing down.
DEMAND IN INVESTOR HEARTLAND
Where will first-home buyers go with their 5% deposits? Into suburbs with affordable housing and strong rental demand; exactly where investors have been targeting for years. That likely means:
- More competition for stock
- Reduced availability of entry-level properties
In other words, the same areas that investors know deliver results will only get busier.
A SCHEME THAT MAY BACKFIRE
Ironically, the scheme could hurt the people it’s designed to help. By boosting demand without fixing supply, first-home buyers risk being priced out as they compete with each other and with investors.
For investors, though, this reinforces the value of acting early in growth markets. Being positioned ahead of a demand spike can translate into faster capital growth.
THE INVESTOR TAKEAWAY
At Future Assist, we’ve always focused on suburbs with strong future demand and growth potential. We’re still out there finding opportunities before the market catches on.
Finding the right stock isn’t easy. For our Investment Committee, every property has to tick strict criteria: location, rental demand, growth potential, and value. Our long-standing relationships with developers, builders, and other market players mean we often get exclusive early access to opportunities before they’re available to the general public.
For an individual investor, it’s going to be even tougher to find suitable properties, let alone secure them, arrange finance, and navigate the entire process.
This is why having a clear strategy, expert knowledge, and a dedicated team makes a real difference. While many struggle to navigate these challenges alone, our team is positioned to identify opportunities ahead of the market and act quickly, turning what could be a hurdle into an advantage. For us, government policy doesn’t have to be a hurdle — it can be an opportunity.
Why go it alone when you can have a team of experts behind you? Contact Future Assist today and start your investment journey with confidence.
It’s important to note that individual results may vary based on a variety of factors including but not limited to the client’s unique circumstances, goals, and actions taken. This information is not intended to serve as professional advice or guidance. Original source: www.abc.net.au/news/.
