House prices have already dropped.In our area (outer east...

If properties are not being pushed up in price artificially by tax payers subsidizing investors, and first home buyers are not competing with an exaggerated number of subsidized investors, it gives them a chance to get their foot in the door, instead of chasing a market they struggle to catch. 

House prices have already dropped.

In our area (outer east Melbourne) house prices over approximately the last 5 years increased around $1,000 per week, over the last 6 plus months prices have dropped about $50k per house.

The NG changes are about slowing growth, not dropping prices, (taking the heat out of an artificially overcooked market).


I'm not sure what other parents do, or how much they put up to help their kids, but you wouldn't think they would be putting in the whole of the 10% deposit.

Two of my kids have purchased homes, one has recently sold their first home and moved into their second home (worth near a million), all with zero financial help from me. 

The other struggled to get their first home due to competing with investors at the low end of the market, she just scrapped in without my financial assistance. She has since spit with her husband, and borrowed from me to pay him out, as she did not qualify for a loan for the full amount she needed to buy the house herself.  We agreed the loan was for two years, when she should be in a better position to refinance the house for the full amount.


I'm happy if prices cool, they don't need to drop, but the growth in prices has been ridiculous and needs slowing.