A 5% deposit sounds like the golden ticket into your first home. But what if it's quietly pushing prices higher — and setting you up for a costly mistake?
In this episode, Meighan and Veronica break down the truth about the First Home Buyer Guarantee and its ripple effects on the market. While the scheme is designed to make housing more accessible, it's also creating bidding frenzies just under key price caps, inflating values, and leaving some first home buyers with properties that may not grow in value. The good news?
There are smarter alternatives if you know where to look.
Here's what we cover and why it matters:
💸 How the 5% deposit scheme fuels competition
When thousands of buyers suddenly qualify with the same budget cap, it creates a bidding frenzy under key thresholds. We show how this artificial demand is inflating prices.
🏠 Why some buyers are overpaying under $1M
From Brisbane's sub-$1M bracket to Sydney's $1.5M cap, we unpack why properties are selling for far more than they're worth — and the dangers of getting caught in the herd.
🔑 Smarter alternatives to the scheme
Sometimes paying LMI is cheaper than overpaying for a capped property. We explain how this strategy can unlock better locations, more bedrooms, and long-term value.
📊 The long-term risks of relying on 5% deposits
When growth stalls, artificially inflated properties stagnate. We reveal why strategy, asset selection, and planning for the future matter far more than short-term savings.
🎯 By the end of this episode, you'll know exactly how to weigh up the 5% deposit scheme, when it makes sense, and when to walk away.
Listen now and learn how to avoid costly mistakes while setting yourself up for long-term success.
00:00 – Introduction
02:03 – How the 5% Deposit Scheme Really Works
03:20 – The Scheme's Impact on Property Prices
05:12 – Smarter Alternatives: LMI vs. 5% Deposit
08:10 – Strategic Thinking for First Home Buyers
15:35 – Final Thoughts & Course Information
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