Property prices to plunge leaving first home buyers with a ticking time bomb | 7NEWS

Thousands of first home buyers who purchased under the Albanese government's 5 % deposit scheme are facing a ticking time bomb.Property prices are expected to plunge due to the budget, meaning many could owe more on their mortgage than their mortgage houses are actually worth.

The Liberal leader outlines his battle plan to take down the government with the new party president and federal council.

We're going to fight like hell and win this war.

Speaking at the Crown in Melbourne, Angus Taylor says the Prime Minister's budget gamble on property taxes...He is a chronic liar.Economists say the changes to the capital gains tax discount and negative gearing will see property value...Further, any drop greater than 5 % is a red zone for Australians who have used the government's 5 % scheme as they could go into negative equity.

The real risk comes if for some reason you have to sell the property and then you get for it, the amount of money you get for it doesn't cover the mortgage.

A risk that is rising as unemployment, inflation and interest rates surge.The advice is act now.

If you do have spare cash, if you get a bonus or a windfall or you know, Parents can give you some money or whatever, put it into the property.

Today cabinet ministers seemed unfazed.That's because Labor is playing the long game on property, hoping to win over younger voters.

First time buyers are turning up at auctions and competing with people who've got the negative gearing tax concession in one pocket and the capital gains tax discount in another pocket.

Hoping they won't take a hammering at the election.Josh Martin, Seven News.