In a bid to help first-home buyers be able to afford to buy a home, the ACTU will make a submission this week to the Fair Work Commission, aiming for an increase to the minimum wage.
Government assistance like this along with flexible lending policies is seen as key to help first-home buyers get into the market.
ACTU secretary Dave Oliver told The Adviser home ownership was now a ‘pipe dream’ for minimum wage earners.
“The minimum wage has less than doubled in the past 20 years compared to a 250 per cent increase in housing prices,” he said.
“Someone on a minimum wage of $622 per week has enough to cover their basic costs and that’s about it. These workers tell us it’s impossible to save up a deposit, let alone afford the weekly repayments.”
Government help such as reducing stamp duty and spurring competition from LMI providers to reduce insurance prices could be a fillip for first-home buyers to save enough for a deposit.
Gary Tolliday from Gary Tolliday also told The Adviser that he believed the government should back first-home buyers with financial assistance and that lenders need to offer higher LVR loans.