Help to Buy Scheme: How Does it Affect You?

As you’ve probably heard by now, up to 10,000 Australians may get their foot on the property ladder if the Labor government gets elected. The idea is to have the government take an equity stake for up to 40 percent of the purchase price of a new home, and up to 30 percent for an existing home.

Anthony Albanese said this Labor’s policy is called “Help to Buy” and it’s meant to tackle the current housing crisis. This could help Australians buy a home and stay on their budget, take out a smaller mortgage, do a smaller deposit, and most importantly buy a house.

The Help to Buy scheme’s intention is to help up to 10,000 Australians buy a property amidst a housing crisis. You are eligible if you are 1) An Australian citizen. 2} An individual with a taxable income of up to $90,000. 3) A couple with a taxable income up to $120,000. One important thing to note is that home buyers cannot own or have an interest in a residential dwelling.

Eligible homebuyers will only need a 2 percent deposit. And that is remarkably lower than the recommended 20 percent. Homebuyers will also avoid paying the costly Lender’s Mortgage Insurance (LMI), which means additional savings that can easily be in the tens of thousands of dollars range, depending on the property value.

Additionally, homebuyers are not required to pay rent on the portion that the government owns. What’s going to happen is that the government co-owns that percentage of the property, and the homeowner would have a chance to buy out the government’s portion over time. With regard to property prices, there will be a property price cap on the value of properties eligible for the scheme. Refer to the table below:

There are some other government buyer schemes out there to help people but this “Help to Buy” scheme is intended to help buy a property more affordable compared to the others. It’s co-buying a larger portion of the property price.  Simply put, the concept is not new but it’s definitely a promising one.

It’s just not the government that is laying out this concept. Property Mates is a pioneer in fractional ownership and have been pushing the idea of co-buying or co-ownership to help Australians get their foot on the property ladder. Simply put, Property Mates is a social platform helping all property players connect and build relationships together, and with this our aim so help every Australian buy or co-own a house with the help and connections of everyone in the real estate world.

The real estate world is constantly changing with prices, interest rates, trends, etc. But no matter what the change is, Property Mates is here to help you buy your first home, your first investment property, or simply just get your foot on the property ladder.