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First homes more affordable under Family First policy.

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MEDIA RELEASE SF/144. Wednesday May 30, 2007

FIRST HOMES MORE AFFORDABLE UNDER FAMILY FIRST POLICY NEW figures revealing that housing affordability is at its lowest level since records began 23 years ago confirm the need for urgent action to help young Australians buy their own home.

Not only have first-home prices skyrocketed in the past year, but families are being denied their Australian dream because of an unfair tax system that rewards investors over first homebuyers.

Under FAMILY FIRST’s “Kickstart to Home Ownership” policy, first homes will be much more affordable as first homebuyer families will enjoy the same tax benefits that investors receive for the first five years. This means they can claim their interest costs on their mortgage as a tax deduction, up to $7000 every year.

This means families on an average mortgage will have their weekly payments slashed by $93.48, from $373.23 to $279.75.

On an average mortgage of $217,500, at a current rate of 7.45 per cent, the interest bill is $16,204 per year.

Under FAMILY FIRST's policy, couples earning between $25,001 and $75,000 will have their interest bill cut to $11,342; a massive saving of $4,861 per year or $93.48 per week.

Mortgage payments before “KICK START” will be $373.23 per week.

Mortgage payments after “KICK START”will be $279.75 per week.

FAMILY FIRST estimates its policy could cost up to $522m in the first year, rising to $2.6b per year after the first five years, based on ABS and other data.

More and more young families who dream of buying a house are kissing those dreams goodbye.

FAMILY FIRST’s policy is affordable and means young families will be able to afford their first home, which gives them peace of mind to plan for their future. Families are battling to make ends meet with soaring petrol prices and rising grocery costs, electricity and other bills. This policy will help families break free of the rental trap and achieve their Great Australian Dream.

Media enquiries Chief of Staff Felicity Dargan on 0409 550 446