Australian property is not what it was five years ago. The government’s schemes mean first-home buyers can get in with a smaller deposit. That sounds helpful—until you look at the risks.
First, the policy lets buyers move faster, save thousands on lenders mortgage insurance, and buy before prices rise. But with more people bidding, prices shift up to meet the new scheme caps. You save on one side, but pay more on the other. If a buyer lands a deal at the top of a rising market, the numbers get dangerous. Few buyers in this group have a large deposit. When prices drop, they owe more than the property is worth. Australia’s closest peers, New Zealand and Canada, have seen declines of more than fifteen percent. Lose ground like that, and thousands are underwater in equity.
Several experts have pointed out the flaws. Interest rates are still high, and repayments eat most of the early years. Housing “affordability” means not only how quickly you save a deposit, but how comfortably you pay the loan. Rising prices and bigger loans flatten your buffer. The risk is real. Buyers are chasing rising values with thin margins.
If you guide clients, highlight these points. Saving years on a deposit is good. The reality: lower deposits mean higher total debt. For brokers, coaching solid financial discipline—not just quick entry—is essential. Make sure buyers understand all repayments, the likely impact if rates jump, and what happens if values fall in their area.
On the investment side, stories like Daniel Walsh’s show what a clear, business-like approach looks like. Walsh built a substantial portfolio without chasing the number of holdings. He focused on fewer assets with room for growth, strict risk management, and a focus on financial sustainability. This is the blueprint for success.
Landlords have seen that traditional strategies sometimes “bleed you dry.” The last decade proved that chasing capital growth without protecting cash flow is a mistake. The best investors think like business owners. They expect tenants to cover outgoings, they don’t sacrifice income, and they keep a strict eye on capital and yield. Commercial property often provides better protection and stability. Landlords who adapt will avoid draining losses—those who don’t will learn the hard way.
For mortgage brokers, the implications are clear. Give clients transparent advice. Steer them past schemes into genuine financial resilience. Show them the difference an equity buffer will make if the market dips. Push for strategies that respect risk over fast entry. Use data. Give examples of what falling prices would mean to buyers’ bottom lines. And when you plan with investors, help them choose cash flow and manageable growth over speculation.
These changes are not theoretical. Brokers who see what’s happening, call it out plainly, and guide clients with discipline will keep their businesses strong. The market rewards clarity and practical advice—especially now, when schemes and incentives tempt buyers into greater risk than they realise.
