Barefoot investors warn that “stupid” property changes will further raise prices in Australia: “up 10%”

Barefoot investors warn that the government’s first homebuyer program will worsen housing affordability and put vulnerable Australians at risk.

Scott Pape said the plan promises to allow first home buyers to buy with just a 5% deposit, which will “raise the price.”

“I caught up from the old partner of SQM Research, Louie Christopher, who predicts that real estate prices will rise as much as 10% this calendar year! ”He wrote in the column press.

‘The first homebuyer’s deposit policy is stupid. My partner Louis said they will only raise the price.

Pape claims Prime Minister Anthony Albanese and Treasurer Jim Chalmers will not suggest such loans to their families.

“None of them would sit down at lunch on Sunday and tell their sister (if she was a low-income mom) to go out and buy a house with a deposit of 2.5 percent,” he wrote.

“Instead, they would say, “What if interest rates rise? What if you lose your job? ”

Pape warned that the consequences of such a policy were already obvious, sharing a letter from a reader named Sarah.

“Two years ago, I purchased my first property using a government single parent grant, which means I only need to save 2.5% on my deposit,” she wrote.

Unfortunately, as interest rates and cost of living rise, I can no longer maintain the cost of a mortgage. My daughter and I are really struggling.

Papp said he will provide Sarah financial guidance in the future column, but adds grim forecasts.

‘It would be a good warm-up. After all, when the Labor Party’s deposit policy is launched, more Sara people will appear from the door. ” he wrote.

“Live on your own path. ”

In the federal election, labor confirmed that this would allow all first home buyers to get a 5% deposit without an income cap or limit.

The party also promises to retain up to 100,000 homes for first-time buyers.

Former opposition leader Peter Dutton told voters he would allow them to use some pensions to fund their first home purchases.

Last month, barefoot investors compared Australian homes to “sardines sold at caviar,” which slid brutally in attempts by both parties to resolve the housing crisis.

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Paup said he spent four hours traveling through Melbourne with his 11-year-old son, who quickly noticed the key phrase “cost of living” that splashed the election billboards around the city: “Cost of Living.”

The finance master pointed out that his son was “spotted” but claimed that neither the Labor nor the Union did much to solve the problem.

The biggest cost? Roof on the roof – Rent or mortgage. That’s where the squeeze is,” he wrote in the column of The Herald Sun.

“Houses in Australia are now the lowest-priced home on the planet. To be affordable, we have added world-class debt.

“Back in the mid-2000s, the average cost of a home was four times the average income. Now it’s over eight.

Pape claims that the current housing market “prices the average Australian from its own neighborhoods”.

However, Pape claims that both offer only the option of putting more money into the hands of the existing property owners.

However, for Australian borrowers, those who average mortgages can save $100 a month on repayments as expected interest rates are lower next week.

Most economists expect the Reserve Bank of Australia to lower its cash rate by 25% at its May 20 meeting, from 4.1% to 3.85%.

Financial markets viewed a quarter of the percentage point that Tuesday fell as a 95% chance.