> 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..
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..