Albo’s flagship housing policy branded ‘useless’ after it rules out almost every home on the market in one city alone

A key part of Anthony Albanese’s housing policy has come under fire after new research found that only four percent of homes in a major city would qualify.

Analysis of the government’s proposed Help to Buy co-ownership program has found that one person can pay a maximum of $655,000 for a property – ruling out the 96 cents of Sydney homes that cost more than that.

“I was trying to think about the last time I saw a house for sale at that price,” Alan Hemmings, CEO of Home Loan Experts (HLE), told the newspaper. Daily telegram.

He said the scheme would add to “demand which will push prices up even further” and would not solve the “overarching problem” of housing supply.

Two out of three Sydney apartments sold in the past year cost more than $655,000, which would also exclude 66 percent of the housing stock under Labor’s flagship program.

Anthony Albanese’s housing policy has come under fire after new research found that only four percent of homes in a major city would qualify. The photo shows the Prime Minister

Labor has taken the policy into the 2022 federal election, but it has not yet become law.

If it passes the Senate, where Labor needs support from small parties to pass legislation, the government would pay 30 percent of an existing building or 40 percent of a new build.

But one person who wants to join in can’t make more than $90,000 a year, and would only be able to get a $458,000 loan after account usability testing, where lenders assess

a loan applicant’s ability to repay mortgages at 9.5 percent, even though interest rates are currently around 6.5 percent.

When the government’s 30 percent contribution is added, the total amount available for an existing home is $655,000, HLE’s calculations show.

Mr Albanese defended his housing policy on Monday morning, telling ABC Radio that the Government has “a whole range of programmes, this is just an additional program and what it actually does is enable shared equality and shared ownership so that people only need 2 per cent.” of a down payment’.

‘It makes it a lot easier to pay off and at a later date the person can then buy out the government share at a time that suits them, if they choose.

“It has worked effectively in Western Australia for over 50 years and has made a difference. It’s just one measure.’

The prime minister said it is unlikely the plan will pass the Senate quickly because “the Greens and the Libyan Party will go against the comprehensive housing plan.”

“They can be held accountable for it – why they would vote against a plan that would help more people into home ownership, about 10,000 a year,” he said.

Julie Collins, the Federal Housing Minister, has also defended the plan, saying: ‘Help to Buy is designed to help those struggling to enter the housing market buy a home, without driving up property prices. That’s why it’s very targeted.’

Pictured is a house in Sydney's south-west that recently sold for less than $655,000 - and would be eligible for purchase under Labor's proposed scheme.

Pictured is a house in Sydney’s south-west that recently sold for less than $655,000 – and would be eligible for purchase under Labor’s proposed plan.

“Across the country, Help to Buy will be life-changing, putting home ownership back within the reach of thousands of Australians, especially renters,” she said.

Independent Sydney MP Allegra Spender criticized the lack of detail in the Help to Buy Bill when it was debated in Parliament last week.

She said research by the Parliamentary Budget Office showed this would require $22 billion of taxpayers’ money.

“While I support the intent of the plan, I feel deeply uncomfortable giving a minister this amount of public money with so little oversight and accountability,” Ms Spender said.

What is the Help to Buy scheme?

The Help to Buy scheme is a share scheme that allows eligible homebuyers to purchase a home with a smaller deposit.

This scheme ensures that buyers with a deposit of at least 2 per cent of the property purchase price can obtain a loan with a co-payment from the federal Labor government.

The size of the available personal contribution can vary from a maximum of 30 percent for an existing home to a maximum of 40 percent of the purchase price for a new home.

This aims to help eligible homeowners enter the property market faster with a smaller deposit and benefit from a smaller mortgage and smaller mortgage repayments.

While you won’t have to pay rent on the government-owned portion of the house, the government’s co-payment is expected to be paid off over time, or reimbursed if you sell.

Labor has announced that 10,000 places on the Help to Buy scheme will be available to eligible homebuyers each year if the legislation is passed.

Source: Mortgage choice