> It would be better to provide subsidies and encouragement toward saving for a reasonable down payment.
The problem with that idea is often house prices appreciate faster than one can save. First home buyers can be priced out for many years: they can't save enough to get on the first rung. It's very depressing.
I've seen this in New Zealand where we typically require 10% or 20% deposit. Often people can't get on the housing ladder, unless they get a windfall or their family helps with the deposit (favouring the wealthier). Sometimes the minimum percentage increases which also fucks over those that think they are almost there..
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The problem with that idea is often house prices appreciate faster than one can save. First home buyers can be priced out for many years: they can't save enough to get on the first rung. It's very depressing.
I've seen this in New Zealand where we typically require 10% or 20% deposit. Often people can't get on the housing ladder, unless they get a windfall or their family helps with the deposit (favouring the wealthier). Sometimes the minimum percentage increases which also fucks over those that think they are almost there..