$500 million ‘gimmick’ we all fell for

PHOTO: ScoMo’s scheme is considered to be a dud by critics. Picture: AAP Image/Paul Braven Source:AAP

It’s supposed to help struggling first-home buyers. Instead, it has been slammed as “bad news” before it has even got off the ground.

When Scott Morrison announced a radical – and expensive – plan to help first-home buyers just before the May election, critics had a lot to say.

Independent economist Saul Eslake said the plan would only help a lucky few get ahead and could even put “upwards pressure on prices”.

Former independent MP Kerryn Phelps said it was “concerning” and could lead to borrowers struggling to make their repayments, while realestate.com.au chief economist Nerida Conisbee said it could lift prices by increasing the number of buyers.

Mr Morrison went on to win the election and has stuck with the scheme, which is now just weeks away from officially launching on January 1.

But property and financial experts are still far from convinced it’s worth it.

And according to Starr Partners chief executive Douglas Driscoll, it was little more than an election ploy voters fell for.

“It was a campaign gimmick conceived on the back of the election bus,” he told news.com.au.

“If you look at the 10,000 deposit schemes that are available, that constitutes less than 10 per cent of the first-home buyer population based on current numbers.

“I welcome anything that’s there to aid and abet and assist the first-home buyer, but this was just a simple tactic to get more votes.”