What's on the way with property?

There's a lot going on at the moment. We've got;

  • New First Home Buyer Deposit Scheme
  • Borrowing powers set to increase due to relaxed lender policies
  • Decreasing interest rates
  • Confidence regarding Negative Gearing

Early suggestions around the First Home Buyer Scheme are the policy will be capped at 10,000 loans. The economist in this article is estimating there's 127,000 people eligible with 5% deposits.Assuming they're all couples you're a bit over 50,000 guarantees short. The Government is yet to form the body to preside over the establishment of this policy, I would think if they don't increase it from 10,000 Labor and the media will be all over them. Labor can't call the policy stupid as they were going to introduce the same policy so it's coming regardless.

Soft confirmation on banks making loan assessment easier. I have heard today (17/06/19) that a bank has reduced their assessment rate to 6.5% from 7.25%. This is not confirmed officially and is not yet policy but it comes from a strong source, I won't name the lender until it is policy.

When you increase borrowing power universally and introduce legislation to artificially increase demand house prices are bound to go up. Will the government keep a policy in play when it is helping increase house prices (something they are attacked for at least monthly) and is a liability on their books?