Page 3 - Wealth-Adviser-Issue-122 (FWP)

ISSUE 122
OCTOBER 2025

critical role in guiding retail clients toward prudent deci- life considerations is crucial in evaluating whether the
sion-making. The complexities of low-deposit schemes scheme is an opportunity—or merely an illusion—for each
demand a nuanced approach to risk management, long-term individual.
planning, and philosophical reflection on the value of home
ownership versus alternative investment strategies. Conclusion
The expanded Home Guarantee Scheme is a bold policy
“Advisers recommend assessing long-term move intended to unlock home ownership for tens of
affordability, risk tolerance, and alternative wealth thousands of Australians long shut out of the market. While
strategies before buying.” it offers real opportunities for first-home buyers through
– Realestate.com.au reduced deposits and broader access, its long-term effective-
ness depends on simultaneous advances in housing supply
Buyers are urged to scrutinise their own financial resil- and market stability.
ience, considering both the benefits and risks presented by For retail clients, the key to navigating these reforms
the Home Guarantee Scheme. This involves questioning lies in working closely with skilled advisers: understanding
not only whether they can meet the financial commitment eligibility, managing risks, and charting financial resilience.
today, but whether their circumstances will remain stable Ultimately, the scheme should be viewed not as a panacea,
over the life of the loan. Advisers suggest using budgeting but as one tool among many in the pursuit of the Australian
tools, loan calculators, and considering debt-servicing ratios Dream.
as vital steps before making a leap.
For some, it may be wiser to pursue gradual wealth accu-
mulation through superannuation contributions or diversi- References
fied investments before stepping into home ownership. The 1. Young & Invested: Expansion of Home Guarantee Scheme won’t help
scheme’s promise of early ownership is attractive, but must housing crisis – Morningstar Australia, 30 September 2025
be weighed against the potential for elevated repayments, 2. Home Guarantee Scheme – Housing Australia, 31 August 2025
changing market conditions, and personal career or family 3. Unlimited places, higher property price caps for first home buyers from
goals. 1 October 2025 – Housing Australia, 23 August 2025
4. Home Guarantee expansion will inflate prices, harm those it aims to
“Sustainable financial resilience means not only help – Insurance Council of Australia, 24 August 2025
buying a home—but securing a future in which 5. Home Guarantee Scheme: what is changing and how does it work? –
ownership remains affordable and supports broader Realestate.com.au News, 30 September 2025
lifestyle aspirations.” 6. Albanese Government delivers 5% deposits for all first home buyers
– Homestolove.com.au sooner – Prime Minister of Australia, 24 August 2025
7. Fast entry or backwards step? What Labor’s new housing policy means
Philosophically, advisers encourage clients to reflect on for you – SBS News, 29 September 2025
what “Home” means: security, investment, community, or 8. HGS Trends and Insights Report 2024-25 – Housing Australia, 1
flexibility. The intersection of practical advice and broader October 2025

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