Housing Minister Clare O’Neil has been criticised for a “sales pitch” on social media encouraging Australians to tell their friends about Labor’s scheme for first-home buyers.
Ms O’Neil posted the video to her X account on Monday afternoon to promote the extension of the government’s Home Guarantee Scheme.
The scheme allows first-home buyers, local buyers and single parents to purchase a home with a deposit of five percent or less, instead of the usual 10 to 20 percent typically required for a mortgage.
In the caption she wrote: ‘Thinking about buying a house? Is a friend of yours thinking about it? Tell them about Labour’s expanded Home Guarantee Scheme and you could be eligible to buy with a deposit of 5 per cent or less.’
She said in the video: “Buying a house is one of the biggest things you will ever do in your life and the Albanian government wants to be there for you when it comes down to it.”
‘We want more Australians to have the opportunity to move from renting to owning. The Home Guarantee Scheme is one of the ways we are helping right now.’
Ms O’Neil explained that the government will top up applicants’ deposits until they reach the minimum deposit threshold that banks require before they will grant a mortgage.
Then she says, “Be sure to tell your friends.”
But the video sparked a backlash against the minister.
Housing Minister Clare O’Neil has been criticised over a social media post about Labour’s housing plan (pictured)
A user asked, “Why does it look like you’re selling a used car in all your videos?”
Someone else said, “Your job is not to sell pyramid schemes.”
A third user said: ‘I think this is great, the government is working with the banks to make this possible… gold.’
Others said that subsidizing the deposits only caused more people to bid on homes and drove up the extremely high prices even further.
Others said the reason many people can’t make a 10 percent down payment is because rents are so high.
Australia has some of the highest property and rental prices in the world, due to a housing shortage at a time of rapid population growth, fueled by record levels of immigration.
‘Hey Clare, can you explain how your help-to-buy scheme is reducing house prices? I’m asking for a friend,’ said one user.
‘Someone else said, ‘No thanks. At the moment as a single tenant on over $110,000 in Sydney, I’m actually getting by because the rent is almost 50 per cent and that’s in the south-west… not the CBD.
‘Australia’s house prices are a legal scam.’
Australians were not convinced by the Housing Minister’s comments (pictured)
Some commentators also raised concerns that a down payment of five percent or less would significantly increase weekly mortgage payments on a typical 30-year loan, putting more pressure on first-home buyers, rather than less.
However, not everyone was critical. Some thought it was a good way to get people into the housing market and no longer have to wait in line for rental properties.
“That’s great, but I’m afraid I won’t be able to afford to buy my own house when I’m 70 unless we win the lottery. But it will help the youngsters,” one user said.
The Albanian government has also pledged to help more people own homes by building 1.2 million houses over the next five years. But even that modest number has proven too much compared to the influx of immigrants, with the program running well behind schedule.
According to the Labor union, the construction would increase supply and lower prices. However, the plan has been heavily criticized because it is intended as a way for wealthy developers to make money.