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SYDNEY (Reuters) – The Australian government announced on Sunday an ambitious initiative to allocate A$10 billion (approximately $6.29 billion) towards grants and loans aimed at constructing as many as 100,000 new homes. This move is part of a broader strategy to assist prospective home buyers in entering the property market, especially as the nation approaches a general election on May 3, where housing affordability is a pivotal concern.
Prime Minister Anthony Albanese, representing the center-left Labor party, is in a competitive race against the opposition Liberal-National coalition. His administration has made a substantial commitment to building 1.2 million homes by 2030, a response to the prevalent dissatisfaction regarding the scarcity of affordable housing across Australia.
As part of the campaign’s rollout, the government revealed plans to collaborate with state developers and industry players to implement this home-building initiative, specifically targeting first-time buyers. Albanese emphasized the need to support young Australians by offering them a “fair go at owning their own home.”
Moreover, the government intends to provide guarantees on a portion of first home buyers’ mortgage loans, which would enable them to secure a home with just a 5% deposit, thus removing the burden of Lenders Mortgage Insurance for many.
In a statement, Albanese remarked, “This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance.”
On the opposing side, Liberal leader Peter Dutton, a former police officer and a member of the previous Liberal-National government, is also addressing the housing issue that affects countless Australians. Dutton argues that soaring housing costs are making home ownership increasingly unattainable for many in the country, which has a population of roughly 26 million.
During the coalition’s campaign launch in Sydney, Dutton is expected to unveil a competing proposal that would enable first-time buyers of newly built homes to deduct their mortgage repayments from their income tax, according to reports from the Australian Broadcasting Corporation.
Dutton’s approval ratings have recently begun to align with those of Albanese. The Prime Minister, who has a history of personal experience with government housing, has faced a decline in popularity attributed to rising living costs and escalating interest rates throughout his time in office.
($1 = 1.5911 Australian dollars)
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