The recent federal election wasn’t just a win — it was a landslide. Labor dominated, and while political shifts come and go, this one is making serious waves in the property world. For first home buyers and investors alike, the real question is: how will this change affect property prices in Australia?

Let’s break it down.

Big Policy, Bigger Impact

A $43 billion housing plan has been laid out by the Labor government — and the biggest highlight is what it offers first home buyers. Under the new policy, buyers can purchase a home with just a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI). That alone can save people up to $35,000.

Here’s where it gets even more interesting — there’s no price cap on the property. That means a buyer can purchase a home worth $1 million, and as long as they qualify as a first home buyer, they only need to put down $50,000 (5%) and won’t pay a cent in LMI.

Add State Support, and It’s Game On

States are stepping in with extra help too. In Queensland, for example:

  • No stamp duty for first home buyers (regardless of property price).
  • A $30,000 first home buyer grant on new properties under $750,000.
  • And yes — still no LMI.

That means someone buying a brand-new $750,000 home could get in for around $37,500 out of pocket… and then receive $30,000 back. That’s unheard of.

Why This Will Push Prices Up

These changes are already causing a buzz — but the real action starts in January 2026 when the expanded policy kicks in nationwide. And according to many economists, this will push prices up in key price brackets, especially:

  • $700,000 to $800,000
  • Around $1 million to $1.2 million

It’s the same effect we saw during the HomeBuilder Grant era, when the $25,000 bonus sent property prices soaring. This time, the stakes (and the savings) are even higher.

Interest Rates Are Next to Shift

Now let’s talk interest rates. The Reserve Bank is set to cut rates soon — potentially by 0.25% this month. Some experts even believe it could be a 0.5% cut, though that’s less likely.

But the bigger trend is this: we’re likely to see interest rates fall by 1% or more before the end of 2025. That could push rates into the mid to low 4% range, which will ease the pressure on home loans and boost buyer confidence.

What It All Means for Buyers and Investors

Two powerful forces are about to hit the Australian property market at once:

  1. Government support making it cheaper and easier to buy.
  2. Cheaper money, thanks to falling interest rates.

That combination almost guarantees a surge in property prices. First home buyers are lining up. Investors are watching closely. And those who hesitate might miss out on one of the best windows we’ve seen in years.

Rare Moment

This isn’t just another policy update — it’s a market-shaping moment. If you’re thinking about buying your first home or investing, now is the time to get serious. With January 2026 on the horizon and state grants already in effect, it’s not just a good opportunity. It’s a rare one.

As the saying goes — don’t wait to buy property. Buy property and wait.

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