The BIG issue with Anthony Albanese’s new housing policy: How Labor could force you to SELL your home if you make more than $90,000
- Labor has proposed a plan to offer to take a 40 per cent stake in People’s Homes
- The move would allow Australians struggling with purchasing to stretch their budget
- It would only be available to people earning a maximum of $90,000 per year
- If they earn more, they have to pay back the government or sell the house
Australians buying a home under Labor’s new Help To Buy scheme could be forced to sell if they make more than $90,000.
Anthony Albanese has proposed a shared ownership program where the government would buy 40 percent of a home to help up-and-coming buyers who couldn’t otherwise afford the home.
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 anyone on the program starts earning above the threshold, they will have to buy up the government’s stake – or sell the house.
This also applies if the owner dies and the inheriting children earn more than the threshold.
Speaking on Sky News on Tuesday morning, Labor Deputy Leader Richard Marles confirmed that owners would have to sell if they were making over $90,000 and couldn’t afford to buy out the government.
“Now if they accumulate wealth during their lifetime, which means they no longer qualify for the program themselves, well, in those circumstances they would have to buy out the government,” he said.
“And that’s fair. So it puts them on the same level as everyone else who has funds.
“And so it would apply in relation to their children. Well, wealthy children want to keep the house in the family, that’s possible.’
Australian Opposition Leader Anthony Albanese and Queensland Prime Minister Annastacia Palaszczuk in Brisbane on Monday
Host Peter Stefanovic asked: “What if they can’t afford it?” and Mr Marles replied: “You do not exercise that option, in which case the property would be sold.”
Prime Minister Scott Morrison blasted the plan on Melbourne’s radio 3AW on Tuesday.
‘Anthony Albanese would put a for sale sign on your lawn. This is crazy,’ he said.
Finance Secretary Simon Birmingham also criticized the policy, telling Sky News: “If you die and your children make a few thousand dollars more, at that point Labor will force the sale of the family home.
“If you make a few thousand dollars more yourself in this home ownership deal with a Labor government, suddenly you have potentially hundreds of thousands of dollars to come up with.”
Housing Minister Michael Sukkar said: “It was bad enough having Albanese at your kitchen table – now he’ll be sitting there at the reading of your will, waiting for his share of your family home.”
It comes as mortgage bills are expected to rise on the back of an expected rate hike on Tuesday.
Labor says its policy will not send house prices skyrocketing as it is capped at 10,000 places a year.
Mr Morrison said on Monday that 164,000 Australians moved into their first homes last year – 70,000 more than when Labor left office.
Anthony Albanese has proposed a shared ownership program where the government would buy 40 percent of a home to help up-and-coming buyers who couldn’t otherwise afford the home
Labor says its policy will not send house prices skyrocketing as it is capped at 10,000 places a year
His government introduced the Home Guarantee Scheme, allowing Australians to buy first homes with as little as a five percent down payment, with the government guaranteeing the other 15 percent.
Single parents only need a deposit of two percent.
Last month, the prime minister announced an increase in the price cap to a maximum of $900,000.
Declining housing affordability has caused home ownership among low- and middle-income earners to fall from 60 percent to 28 percent over the past 40 years.
The Australian Bureau of Statistics reported a 23.7 percent increase in house prices in the last 12 months alone.
HOW HELP WORK TO PURCHASING SYSTEM WORKS
Help to Buy is available to Australians with taxable income of up to US$90,000 for individuals and up to US$120,000 for couples.
Homebuyers must be Australian citizens and not currently own or be interested in a home. You don’t have to be a first home buyer.
Eligible homebuyers receive an equity contribution of up to 40 percent of the purchase price of a new home and up to 30 percent of the purchase price of an existing home.
The homebuyer must have a 2 percent down payment and qualify for a standard home loan with a participating lender to fund the remainder of the purchase.
During the term of the loan, the homebuyer can purchase a portion of the total government interest in the home if they are able to.
The homebuyer does not have to pay rent on the portion of the home owned by the federal government.
The value of eligible homes would differ by region, as shown in the table, with the government proposing to provide varying levels of support between states and regional and metropolitan areas