First-time homebuyers are reaping a windfall of up to $165,000 without any help from their parents or grandparents. This is due to the government's expanded 5% deposit scheme, which allows them to enter the market sooner and benefit from rent and insurance savings, as well as capital gains. Nationally, the typical benefit is $79,000, but in high-priced cities like Sydney, it rises to $165,000, while in more affordable Melbourne, it's $75,000. However, this policy may not be as beneficial as it seems, as it could artificially inflate prices and make it harder for those on lower incomes to save for a 5% deposit. The real solution to the difficulties of first-time homebuyers is building more homes and making more land available for housing, according to independent economist Saul Eslake. But, as mortgage broker Brett Sutton points out, the policy may not be as good as it seems, as it could leave those who are left behind even further behind. So, while the 5% deposit scheme may provide a short-term boost for some, it's important to consider the long-term impact and the potential for price inflation.
