Labor leader Anthony Albanese has announced a bold new plan to get first-time homebuyers into the market should his government be elected on May 21.
The plan will see those looking to get their foot on the property ladder receive up to 40 per cent of the property’s cost covered by the government.
The move could potentially help many young Australians who haven’t even approached the thought of owning a home.
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It has been coined the ‘Help to Buy’ plan and will see buyers borrowing money from the government rather than a bank, potentially saving a significant amount in interest.
Labor argues that the $329 million scheme will help low and income earners into the market.
The policy was launched in Perth over the weekend and forms a key part of Albanese’s campaign to alleviate the cost of living for many Australians.
He said: “After nine long years in government, housing affordability has only got worse under the Liberal-National government.
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“Help to Buy is part of Labor’s plan to tackle the housing crisis.”
The plan will be available to individuals who earn up to $90,000 per year, and couples with a combined income of up to $120,000 per year.
Buyers will only need to put down a deposit of just two per cent to be eligible for the loan of the rest of the price.
Owners won’t have to pay any rent on the government’s share of the property, who will provide 40 per cent on a new home and 30 per cent on existing dwellings.
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However, the government will recoup their investment when the property is eventually sold.
If you are able to find yourself in a bit of money down the line, you’ll be able to buy further stakes of the property from the government.
The Labor Party leader said tens of thousands of Aussies will get access to the program every year.
He tweeted: “There is a housing crisis in Australia – that's why an Albanese Labor Government will cut the cost of buying a home for 10,000 Australians per year.”
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Like many recent first home-owner policies, there will be a cap on the value of the property.
Sydney’s property price cap will be $950,000, Melbourne's is at $850,000, with the lowest being $550,000 for South Australian, Tasmanian and West Australian cities.
Scott Morrison has accused the plan of attempting to own Australians and their properties rather than helping them own their own property.
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According to news.com.au, Morrison told reporters: “Our plan is for Australians to own their own home, not for the government and Anthony Albanese to own your home.
“Under Mr Albanese’s plans, he’s taking a cut.”
He continued: “They will have equity in your home ... I don’t have a plan to make money off of people buying their own home.
“Quite the opposite – I want them to own their own home.”
Jayden Collins