Housing affordability was one of the key battlegrounds for the federal election last Saturday. So what did Labour propose to help first home buyers crack the market?
Help to Buy scheme
Then Opposition Leader, and now our new Prime Minister, Anthony Albanese pitched to first home buyers a “Help to Buy” scheme.
If elected, Labour promised to help you buy a house by purchasing up to 40% of it with you for new builds, and 30% for existing homes.
Eligible first home buyers would need to have saved a minimum deposit of 2%, and the scheme would be limited to individuals earning less than $90,000 or couples earning $120,000.
Under the scheme, which would be capped at 10,000 spots each year, the government would own the relevant percentage of your house that they contribute, which you could choose to buy back over time.
If your income increased above the thresholds, you’d have to start buying the government’s share back, and if you sold your home, the government would claim back its share (along with the relevant proportion of any capital gains).
Property price caps would also apply, including $950,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane, $600,000 in ACT, and $550,000 in Perth, Adelaide, Tasmania and NT.
What else was offered
According to the ALP website, Labour will also help 10,000 first home buyers in regional Australia from January 2023 plus review the current schemes by updating price caps six monthly and improving the process of reallocating unused guarantees.
Further details of these programs will evolve of the coming months, if you have any questions around the availability of these programs, the general housing market or the interest rate outlook over the next 12 to 24 months, please don’t hesitate to get in touch.
We’re more than happy to run through your situation and help you weigh up your options.
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