The BIG problem with Anthony Albanese’s new housing policy: How Labor could force you to SELL your home if you earn more than $90,000
- Labor has proposed a plan to offer to take a 40 per cent take in people’s homes
- The move would allow Aussies struggling to buy to increase their budget
- It would only be available to people earning maximum of $90,000 a year
- If they earn more they will have to pay back the government or sell the home
Australians who buy a home under Labor’s new Help To Buy Scheme could be forced to sell if they earn more than $90,000.
Anthony Albanese has proposed a shared ownership scheme where the government would buy 40 per cent of a home to help aspiring buyers who would otherwise not be able to afford the house.
It would only be available to couples earning less than $120,000 and singles earning less than $90,000.
But Labor has now admitted that if someone on the scheme starts earning over the threshold then they will have to buy out the government’s stake – or sell the house.
This would also apply if the owner died and their children who inherited it earned over the threshold.
Speaking on Sky News on Tuesday morning, Labor Deputy Leader Richard Marles confirmed owners would have to sell if they earned over $90,000 and could not afford to buy out the Government.
‘Now, if during the course of their life, they acquire wealth, which means they themselves no longer qualify for the scheme, well, then in that circumstance, they would need to be buying out the government,’ he said.
‘And that’s fair. So it puts them on the same footing as anyone else who has means.
‘And that’s the way it would apply in relation to their children. So, children who have means want to keep the house in the family, that can be done.’
Australian Opposition Leader Anthony Albanese and Queensland Premier Annastacia Palaszczuk in Brisbane on Monday
Host Peter Stefanovic asked ‘what if they can’t afford that though?’ and Mr Marles replied: ‘They don’t take up that option, in which case the property would then be sold.’
Prime Minister Scott Morrison blasted the scheme on Melbourne’s Radio 3AW on Tuesday.
‘Anthony Albanese would put a for sale sign on your lawn. This is insane,’ he said.
Finance Minister Simon Birmingham also slammed the policy, telling Sky News: ‘If you die and your kids earn a few thousand bucks extra, Labor will force the sale of the family home at that point.
‘If you yourself earn a few thousand dollars extra under this deal of joint home ownership with a Labor government, then you’ll have to suddenly come up with potentially hundreds of thousands of dollars.’
It comes as mortgage bills are predicted to rise on the back of an expected interest rate hike on Tuesday.
Labor says their policy will not push up house prices because it is capped at 10,000 places per year.
Mr Morrison on Monday said that last year 164,000 Australians got into their first home – 70,000 more than when Labor left office.
Anthony Albanese has proposed a shared ownership scheme where the government would buy 40 per cent of a home to help aspiring buyers who would otherwise not be able to afford the house
Labor says their policy will not push up house prices because it is capped at 10,000 places per year
His government introduced the Home Guarantee Scheme which allows Aussies to purchase first homes with a deposit of just five per cent, with the Government guaranteeing the other 15 per cent.
Single parents only need a two per cent deposit.
Last month the PM announced an increase in the price cap to a maximum of $900,000.
Worsening housing affordability has seen home ownership for low and moderate income earners decline from 60 per cent to 28 per cent over the last 40 years.
The Australian Bureau of Statistics reported a 23.7 per cent increase in residential property prices in the last 12 months alone.
HOW LABOR’S HELP TO BUY SCHEME WILL WORK
Help to Buy will be available to Australians with a taxable income of up to $90,000 for individuals and up to $120,000 for couples.
Homebuyers must be Australian citizens and not currently own or have an interest in a residential dwelling. They do not need to be first home buyers.
Eligible homebuyers will get an equity contribution of up to 40 per cent of the purchase price of a new home and up to 30 per cent of the purchase price for an existing home.
The homebuyer will need to have a deposit of 2 per cent and qualify for a standard home loan with a participating lender to finance the remainder of the purchase.
During the loan period the homebuyer can buy out part of all of the government’s stake in the home when they are able to do so.
The homebuyer will not be required to pay rent on the stake of the home owned by the Federal Government.
The value of eligible homes would differ by region shown on the table, with the government proposing to assistance in varying degrees between states and regional and metropolitan areas