October 29, 2025 • 4 mins
The expansion of the Albanese government's 5 per cent deposit scheme launched on October first, making all first-home buyers eligible with no caps on places or income as well as eliminating lenders mortgage insurance. The so-called 'fast entry' into the property market was set to shake things up. But with one month down, how much has actually changed?
For more, Personal Finance Expert and Author Ravi Sharma joins.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
I've gotten so much trouble for cutting that cakerong Donahe's
entire teams on me.
Speaker 2 (00:06):
You're supposed to move the lemons to the side.
Speaker 1 (00:07):
We learn the expansion of the Albanezi government's five percent
deposit scheme, launched on October first, making all first time
buyers eligible with no caps on places or income, as
well as eliminating lenders mortgage insurance, was big news.
Speaker 2 (00:21):
Yeah, the so calls fast entry into the property market
was really set to shake things up. But with one
month down, one month in, how much has actually changed
should tell us more. We welcome back personal finance expert
and author ruviis Shama morning to use rabi when you
live in this space. So one month in, what has changed?
Speaker 3 (00:38):
It's changed quite a bit, But I don't know if
there were surprises, to be honest, like everyone knew that
maybe if you introduce a government scheme like this, you're
going to have more demand that's simply not enough supply.
We're going to see prices higher, and we're starting to
see that happen.
Speaker 1 (00:50):
The original launch dough was January twenty twenty six, came
in early. Did it have the desired effect? Do you
think fast tracking it.
Speaker 3 (00:56):
Well, it did, but it only benefits those who had
the deposit or so Really, some people were managing their
finances to get to a point where they could go
first jan I'm going to be ready for it, and
then suddenly the government goes, actually we're going to bring
it forward.
Speaker 1 (01:09):
But is there an upside to that too, because those
people ready to launch go and they're now out of
the system and it's next to sort of tick text out.
Speaker 3 (01:15):
Yeah, but it only benefits them. So if you think
about it, the people that have the deposit, have the
borrowing capacity, they buy now, prices are going to move
up for the next three four months, and then suddenly
the next batch, Yes, they're going to get the benefit,
but then it just it's a lagging effect.
Speaker 2 (01:28):
And what about for those homeowners it did get in
on the five percent and interest rates, you know, they're
sort of in the middle.
Speaker 1 (01:33):
Now.
Speaker 2 (01:34):
If they do keep on going up in the future,
you're talking about a really high interest repayment that will
no doubt shock a lot of people if the deposit
was so small.
Speaker 3 (01:43):
Yeah, I think with schemes like this, they all focus
on the deposit, but the reality is you're still got
to get a mortgage, you're still going to make the
mortgage repayments, and that happens for the next thirty forty
years potentially, And so I think young people need to
focus on not just the deposit, but also what are
the long term effects of me having alone at ninety
five percent and LVR, because that's pretty scary.
Speaker 1 (02:01):
It's scary, right, What impact is it? Well, it's a
right if you can manage it, if you've thought it
through correct. If you're going in and it's all a
bit of a surprise, it's a nightmare. What impact is
this having on investors in the broader property market, would
you say?
Speaker 3 (02:11):
So? Investors in that market under one million are really
getting affected because now they're having to compete with emotional buyers.
So obviously people that want to live in a property
buy with emotions. People who are investing are just simply
looking at the numbers. So suddenly you just introduce a
whole new pool of buyers. Investors are like, Okay, I
can't buy at the price that I want because the
numbers don't make sense. So it's starting to push those
(02:33):
prices a lot higher under the one million dollar mark.
Speaker 2 (02:35):
Araviy I know it's a question that you know, government
at all levels are asking. We've have the Housing Ministry
on Sunrise this morning talking about eliminating stamp Judy, what
do you think is the solution. Is there something that
you could do straight away that helps alleviate this issue.
Speaker 3 (02:50):
I think I like to simplify things, and people watching
listening they just want simple answers. And I think it's
a simple case of supply and demand. We're simply not
building enough homes, so why are we introducing so much
more demand? So, whether it's schemes like this or the
controversial topic of migration, I think you've got to have
those two numbers linked. Otherwise we're going to have a
(03:10):
structural problem. It doesn't matter what happens, we're going to
see prices continue to go much higher.
Speaker 1 (03:15):
Yeah, you say it's simple, but we can't just build
two hundred thousand houses next year.
Speaker 2 (03:19):
Right.
Speaker 1 (03:20):
For people who are thinking about this taking advantage of
this scheme, what should they be aware of before signing up?
Because it looks good up here, but you need to
understand the tail right.
Speaker 3 (03:28):
Yeah, for sure. I think the biggest thing is that
you need to budget well. You need to know what
the strategy is Is it just buying a place for
the sake of the fact that I get in with
a five percent deposit or other other options like renvesting
and going in and continue renting in the areas you like.
Investing with the numbers make sense. That probably makes a
lot more sense for young Australians.
Speaker 2 (03:46):
Well, combine your deposit with some friends perhaps and do
it that way. This feels like spreadsheet territory. Yeah, spreadsheet together,
Thank you so much.
Speaker 3 (03:55):
We should do a spreadsheet.
Speaker 2 (03:56):
Let's do a spreadsheet. We're right back after this
I've gotten so much trouble for cutting that cakerong Donahe's
entire teams on me.
Speaker 2 (00:06):
You're supposed to move the lemons to the side.
Speaker 1 (00:07):
We learn the expansion of the Albanezi government's five percent
deposit scheme, launched on October first, making all first time
buyers eligible with no caps on places or income, as
well as eliminating lenders mortgage insurance, was big news.
Speaker 2 (00:21):
Yeah, the so calls fast entry into the property market
was really set to shake things up. But with one
month down, one month in, how much has actually changed
should tell us more. We welcome back personal finance expert
and author ruviis Shama morning to use rabi when you
live in this space. So one month in, what has changed?
Speaker 3 (00:38):
It's changed quite a bit, But I don't know if
there were surprises, to be honest, like everyone knew that
maybe if you introduce a government scheme like this, you're
going to have more demand that's simply not enough supply.
We're going to see prices higher, and we're starting to
see that happen.
Speaker 1 (00:50):
The original launch dough was January twenty twenty six, came
in early. Did it have the desired effect? Do you
think fast tracking it.
Speaker 3 (00:56):
Well, it did, but it only benefits those who had
the deposit or so Really, some people were managing their
finances to get to a point where they could go
first jan I'm going to be ready for it, and
then suddenly the government goes, actually we're going to bring
it forward.
Speaker 1 (01:09):
But is there an upside to that too, because those
people ready to launch go and they're now out of
the system and it's next to sort of tick text out.
Speaker 3 (01:15):
Yeah, but it only benefits them. So if you think
about it, the people that have the deposit, have the
borrowing capacity, they buy now, prices are going to move
up for the next three four months, and then suddenly
the next batch, Yes, they're going to get the benefit,
but then it just it's a lagging effect.
Speaker 2 (01:28):
And what about for those homeowners it did get in
on the five percent and interest rates, you know, they're
sort of in the middle.
Speaker 1 (01:33):
Now.
Speaker 2 (01:34):
If they do keep on going up in the future,
you're talking about a really high interest repayment that will
no doubt shock a lot of people if the deposit
was so small.
Speaker 3 (01:43):
Yeah, I think with schemes like this, they all focus
on the deposit, but the reality is you're still got
to get a mortgage, you're still going to make the
mortgage repayments, and that happens for the next thirty forty
years potentially, And so I think young people need to
focus on not just the deposit, but also what are
the long term effects of me having alone at ninety
five percent and LVR, because that's pretty scary.
Speaker 1 (02:01):
It's scary, right, What impact is it? Well, it's a
right if you can manage it, if you've thought it
through correct. If you're going in and it's all a
bit of a surprise, it's a nightmare. What impact is
this having on investors in the broader property market, would
you say?
Speaker 3 (02:11):
So? Investors in that market under one million are really
getting affected because now they're having to compete with emotional buyers.
So obviously people that want to live in a property
buy with emotions. People who are investing are just simply
looking at the numbers. So suddenly you just introduce a
whole new pool of buyers. Investors are like, Okay, I
can't buy at the price that I want because the
numbers don't make sense. So it's starting to push those
(02:33):
prices a lot higher under the one million dollar mark.
Speaker 2 (02:35):
Araviy I know it's a question that you know, government
at all levels are asking. We've have the Housing Ministry
on Sunrise this morning talking about eliminating stamp Judy, what
do you think is the solution. Is there something that
you could do straight away that helps alleviate this issue.
Speaker 3 (02:50):
I think I like to simplify things, and people watching
listening they just want simple answers. And I think it's
a simple case of supply and demand. We're simply not
building enough homes, so why are we introducing so much
more demand? So, whether it's schemes like this or the
controversial topic of migration, I think you've got to have
those two numbers linked. Otherwise we're going to have a
(03:10):
structural problem. It doesn't matter what happens, we're going to
see prices continue to go much higher.
Speaker 1 (03:15):
Yeah, you say it's simple, but we can't just build
two hundred thousand houses next year.
Speaker 2 (03:19):
Right.
Speaker 1 (03:20):
For people who are thinking about this taking advantage of
this scheme, what should they be aware of before signing up?
Because it looks good up here, but you need to
understand the tail right.
Speaker 3 (03:28):
Yeah, for sure. I think the biggest thing is that
you need to budget well. You need to know what
the strategy is Is it just buying a place for
the sake of the fact that I get in with
a five percent deposit or other other options like renvesting
and going in and continue renting in the areas you like.
Investing with the numbers make sense. That probably makes a
lot more sense for young Australians.
Speaker 2 (03:46):
Well, combine your deposit with some friends perhaps and do
it that way. This feels like spreadsheet territory. Yeah, spreadsheet together,
Thank you so much.
Speaker 3 (03:55):
We should do a spreadsheet.
Speaker 2 (03:56):
Let's do a spreadsheet. We're right back after this
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