Melbourne nurse Sarah is trying to save for a home near work – neither party's housing plan will get her any closer
When Sarah* opens her banking app, she sees an account labelled Home Saver. After years of trying to save, there's still $0 in it. The 30-year-old works as a nurse at a major hospital in Melbourne. She normally makes between $2,100 and $2,300 a fortnight. Her last pay, because she got sick, was $1,900.
'I don't think there are any nurses in my demographic – young, single people – who are like, 'Yep, buying a house is a realistic dream,'' she says. 'I don't know many people who are buying. In fact, it's just a lot of people [in] rental stress.'
Sarah is exactly the type of voter the major parties are trying to court with competing housing policies – a millennial who would love to secure the status of first home buyer.
Advocates wonder why the new commitments have targeted a small number of first home buyers over the larger number of lower-income people living in rental stress. And industry experts warn the situation has become so dire, they are only seeing Dinks (dual income, no kids) or people with inheritance make it on to the property ladder.
After paying for rent, groceries, petrol and bills, Sarah says she has hardly anything to put aside. Last year, she stopped living by herself and moved back into a share house to keep her rent down.
Labor has promised to lift the caps on the current federal scheme, allowing every first home buyer to secure a mortgage with a 5% deposit without paying lenders' mortgage insurance (LMI), and to build 100,000 homes across the country reserved for first home buyers.
The Coalition has said it will allow first home buyers who purchase new builds to deduct the interest from their repayments from their income tax, capped at the first $650,000 of the mortgage. They've also promised to unlock $50,000 of super to help with a deposit.
Sarah says neither plan would really help her.
She now rents 10 minutes away from the hospital, but this is a necessity, not a luxury – like many nurses, her shifts often finish at 10pm and start again at 7am.
'I've looked at the median house price around my area, for a two-bedroom apartment, and it's $500,000. So 5% of that is $25,000,' she says. 'It would take many, many years.'
Taking out super could help get her into the market earlier, but she worries it could impact on her livelihood in retirement – or even earlier, if she got sick and needed to access it sooner.
'It is a Band-Aid solution,' she says.
Natasha Janssens, a financial educator, says both policies would 'boost demand' but neither addresses the key problem – 'how overextended families are becoming in order to buy a home'.
'The Coalition policy is offering a cash benefit once you buy a home, the Labor policy is reducing the cost of entry,' Janssens says.
Sign up for the Afternoon Update: Election 2025 email newsletter
She says the tax deduction won't help people struggling to see out the end of the year, while the 5% deposit passes on more risk to the homebuyer if the market dives.
'In both cases, politicians are asking young Australians to put themselves at risk … Whether that is by risking their income in retirement or by overextending themselves and purchasing with a small deposit.'
In the early 2000s, the average house price was four times the average income. Now, it's more than eight. As prices have skyrocketed, saving has become even harder: it now takes more than 12 years for an average household to save a 20% deposit, up from six in the early 1990s.
Janssens says this means people often have to be coupled to get into the housing market.
Zena and her partner count themselves very lucky. They are Dinks – with a double income of about $250,000 and no kids. They know they are in a position many aren't.
They want to buy an already-built home in Melbourne's inner north, so think Labor's policy will get them in the door faster.
Because of their income, they are locked out of the existing scheme.
'If they [Labor] win the election, we would benefit from that,' she says.
'Because I think we'll be in a position to have more than a 10% deposit, but we probably won't be able to get to 20%, so that means that we would be able to save on the LMI cost.
'If we're looking at a house which costs $950,000, the LMI on, if we had a 10% deposit, would [depending on the lender] be like $16,000 or $17,000 added to the loan.'
Sign up to Afternoon Update: Election 2025
Our Australian afternoon update breaks down the key election campaign stories of the day, telling you what's happening and why it matters
after newsletter promotion
She believes both parties should support the building of nicer apartments in cities, and focus on policies that help first home buyers, 'compared to them being outbid by boomers who are investing'.
Melissa Gielnik, the managing director of Smart Lending Mortgage Brokers, says the biggest winners would be those who take advantage of the Coalition's plan and buy a new-build. 'It's almost like being an investor,' she says. 'It's tax-deductible interest.'
Gielnik says it will be a 'massive combo' with the federal government's current first home guarantee scheme, which wipes LMI and stamp duty to those with a 5% deposit under certain incomes.
She thinks 'it's very positive for first-time buyers', whoever gets in.
Still, some of those buyers aren't convinced.
Louise Smith, 34, has been saving for a home almost 20 years, since she started working at 15.
She wants to buy in the next year. Labor's policy won't help her further, because she already has the deposit to purchase in the area she wants. But the Coalition's policy also doesn't appeal, because she has a low income, and it won't help with the high mortgage repayments.
The main thing Smith wants to see is lower house prices. Last week she inspected a two-bedroom home in Reservoir, in Melbourne's north, that needed substantial renovations, had no garden and bouncy floorboards. It had a price tag of almost $1m.
'What would actually help would be regulation to the housing market so that these absolutely exorbitant prices weren't the norm,' she said. 'It's outrageous.'
The CEO of Homelessness Australia, Kate Colvin, wants everyone to look at the numbers. Over the year to 2024, there were 117,000 first home buyers, and more than half a million renters on commonwealth rent assistance who were paying more than 30% of their income in rent.
'We should really be talking about renters and homelessness,' she says. 'We've got 280,000 people coming to homeless services every year, which is more than twice as many first home buyers.'
Colvin says 'the lion's share' of the housing crisis could be dealt with by building more social housing.
'If we got to the point where we had one in 10 properties that were social or affordable housing, then people like [Sarah] could be paying more affordable rent and saving for home ownership.
'It's the policy solution to rule them all.'
While Labor has made inroads, with February figures showing 340 new social homes have been built and about 5,400 are under construction, 'it needs to scale up', Colvin says.
'We're in the middle of a federal election, we've got to be aspiring to be a country that's better than Australian families raising their children in tents.'
* Name has been changed for privacy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
4 hours ago
- Daily Mail
Former SAS soldier turned MP is praised for his extraordinary response to anti-war heckler slamming Australia's support of Iran strikes
Shadow Home Affairs Minister Andrew Hastie has been commended for his response to a heckler who interrupted his speech on the US bomb strikes in the Middle East. The 42-year-old former military commander on Sunday said the Coalition backed the strikes on nuclear facilities in Iran, carried out by the Trump administration overnight. 'We do support the United Sates, and the Albanese government should be supporting the United States as well,' Hastie said at a press conference. Later in the speech, Hastie said the Coalition stood in solidarity with the Iranian people, but criticised the country's authoritarian regime as 'sponsoring terrorism'. A protestor in the crowd was then picked up on news microphones yelling, 'Oh come on, the United States of America is the most terrorist country in the world'. Other crowd members turned on the woman and told her to keep quiet. Hastie, however, swiftly stepped in and appeared to encourage the interruption. 'It's a free country,' he told the crowd. 'She's allowed to say what she likes.' Footage of the moment quickly spread online, where the Liberal MP for Canning was praised by viewers for his response to the woman's protest. '(He was) level-headed, well-spoken,' one person said. Another agreed, saying they thought Hastie appeared 'very tolerant and professional with the protester'. 'He's seen the worst of the worst,' a third wrote, referencing Hastie's time as a troop commander in the Special Air Service Regiment (SASR), 'so one protester matters little'. In his speech, Hastie declared support the US strikes, describing them as justified in the current security climate. 'We do not want war, but we believe this was a necessary action to take by the United States military. 'President (Donald) Trump gave the offer of negotiations and over the last two days, the Iranians have not taken up that offer. 'So the coalition stands in solidarity with the Iranian people. We regret the loss of life in Iran and Israel and we hope for a peaceful settlement going forward.' He also criticised the Albanese government's stance on the conflict. 'I think they've been far too ambiguous,' he said. 'The United States is a close ally. The United States has a key role in reestablishing order and peace in the Middle East. 'Iran by contrast is a regime that sponsors terrorism. It sponsored Hamas, Hezbollah and the Houthis. It's taken actions against Israel.' The United States launched air strikes on three nuclear facilities inside Iran over the weekend. The attacks marked a significant escalation in the ongoing conflict between Iran and Israel. President Donald Trump confirmed the US launched air strikes on three nuclear facilities inside Iran on Sunday morning (Australian time). The strikes came after years of hostility between Iran and Israel intensified into open aerial conflict earlier this month. Iranian officials said the facilities hit were at Fordow, Natanz, and Isfahan – key sites in the country's nuclear program. Commentators on international law and the Greens criticised the strikes as illegal under international law. A spokesman for the Albanese government urged 'de-escalation, dialogue and diplomacy.' 'We note the US President's statement that now is the time for peace,' a statement read.
The Herald Scotland
a day ago
- The Herald Scotland
The poverty premium: why do we tolerate harm?
For those who work in a frontline service like the Citizens Advice network, this isn't an abstract idea simply referenced in academic papers; it's reality. I grew up in extreme poverty so I understand it only too well. It's the reason why I got into money advice as a career and why I'm so passionate about it. CAB advisers see the poverty premium every day in the faces of the people who come to them for help. More often than not, these people are desperate, usually at a point of crisis where they have nowhere left to turn. I recently heard about a woman who came to her local CAB in distress after falling into rent arrears and facing eviction – a result of a series of failures by systems that are meant to help her. It was a snowball effect. She experienced earnings arrestment for council tax, her Universal Credit was cut, and she was using her credit card to just stay afloat. This is just one of thousands of examples where CABs across Scotland are acting as a backstop for systemic failure across the economy. For a start there's the credit market. People on low incomes often don't qualify for low-interest financial products so are forced to use the more expensive high-interest options. Then there's the banking system. As banks continue to move away from our high streets, anyone who doesn't live near a branch and isn't tech savvy will have to travel to access basic services. If they're lucky, there might be an ATM in their local area, but they might then face a £2 charge to simply access their money. And then there's the energy market, where people experiencing poverty or are on lower incomes often pay more for their energy due to the low energy efficiency of their home. Many also pay when bills arrive rather than by direct debit (see above) which can result in a premium of £130 more per year. This is how the cumulative effect builds up. Some estimates put the total poverty premium at an average of £500 per year. If you're struggling financially in Scotland today you get financially penalised for it. In other words, it costs more to have less. So why don't we explore solutions like more flexible banking and credit options or re-designing cash access infrastructure and actually help people who need support, not push more costs onto them? We've repeatedly called for a social tariff to be applied to all sectors, including the energy market, and for improvements in social security so that people have more money to begin with. These ideas are not rocket science. They're sensible, pragmatic and perfectly achievable, but only if ministers, regulators and institutions have the imagination and the will to achieve them. The poverty premium shames us, yet it could be eliminated. Are we willing to do that, or will we just keep tolerating harm? Sarah-Jayne Dunn is manager of the Financial Health team at Citizens Advice Scotland
Reuters
2 days ago
- Reuters
Thai PM faces call to step down to avert coalition revolt
BANGKOK, June 20 (Reuters) - Thailand's embattled Prime Minister Paetongtarn Shinawatra was facing the prospect of losing her government's majority on Friday as a vital coalition partner looked set to demand her resignation after just 10 months in power. Paetongtarn, the politically inexperienced daughter of divisive tycoon and former premier Thaksin Shinawatra, is fighting fires on multiple fronts, struggling to breathe life into a stagnant economy facing steep U.S. tariffs and under pressure to take a tougher stand on a territorial row with Cambodia that has seen their troops mobilise at the border. The United Thai Nation party, the second-largest partner in her alliance, will demand Paetongtarn, 38, step down as a condition for it to remain in the Pheu Thai Party-led coalition, two UTN sources told Reuters, requesting anonymity because they were not authorised to speak to media. "If she doesn't resign, the party would leave the government," one source said. "We want the party leader to tell the PM as a courtesy." Though Paetongtarn received a boost on Friday with another coalition partner, the Democrat Party, pledging its support, Thailand's youngest premier is still in an untenable position, with her majority hinging on UTN staying in the alliance following Wednesday's exit by the larger Bhumjaithai Party. UTN has not said when it will announce its position. Asked about its decision, UTN spokesperson Akaradej Wongpitakroj declined to provide details. "We have to wait for the party leader to inform the prime minister first," he said. Reflecting concerns in financial markets, the Thai baht THB=TH, opens new tab weakened for a fifth consecutive session on Friday and was on course to log its worst week since late February. Paetongtarn's battle to stay in power demonstrates the declining strength of Pheu Thai, the populist juggernaut of the billionaire Shinawatra family that has dominated Thai elections since 2001, enduring military coups and court rulings that have toppled multiple governments and prime ministers. But Paetongtarn is facing domestic anger and the prospect of an internal revolt over Wednesday's embarrassing leak of a phone call between her and Cambodia's influential former leader Hun Sen - once seen as a Shinawatra family ally - which her critics say posed a threat to Thailand's sovereignty and integrity. During the conversation, Paetongtarn called for a peaceful resolution of the border dispute and disparaged an outspoken Thai army general who she said "just wants to look cool", a red line in a country where the military has a high profile and significant political clout. Political activists met on Friday to schedule a major protest in Bangkok starting on June 28 to demand Paetongtarn resign and coalition partners leave the government. Those included groups with a history of crippling rallies against Shinawatra administrations. Paetongtarn has not commented on the turmoil in her government and has tried to present a united front on the Cambodia issue, appearing on Thursday alongside military chiefs and vowing to defend sovereignty. The premier will make a morale-boosting visit to military units at the Cambodia border on Friday, where she is due to meet Lieutenant General Boonsin Padklang, the regional commander whom she criticised in the leaked call. Paetongtarn's options for staying in power are limited unless her allies can succeed in behind-the-scenes horse-trading to keep her alliance from crumbling. A snap election could damage Pheu Thai at a time of dwindling popularity and play into the hands of the progressive opposition People's Party, the largest force in parliament. Two Pheu Thai sources told Reuters the party is confident Paetongtarn can avoid resigning or dissolving parliament and her government is considering a major cabinet reshuffle to fill vacant positions.
