One of the biggest attractions to any major party, whether it be the coalition party or the labour party, is their ability to make the housing market more affordable. After all, housing has become a lot more expensive than ever before, and it has become out of reach for many individuals. Of course, while housing affordability isn't everyone's priority, it is still important to know what each party has to offer.
So, with that in mind, let's delve into the policies these parties have and what they're all about:
The Coalition Party's Policy
With the coalition's policy, Prime Minister Scott Morrison promises to allow first-time homebuyers to utilise their superannuation to supplement the house deposit. This means that you can use your super to pay for a deposit through a scheme known as Super Home Buyer. However, there are a few catches:
First off, you may not be able to pay off the entire deposit if it is higher than $50,000. This is because only 40% of your super can be accessed for this purpose, and only up to $50,000 in total. Second, you need to have saved up at least 5% of the house deposit before applying for the Super Home Buyer scheme.
That being said, the scheme will apply to both new and existing homes, and there are also no property prices or income caps for the scheme.
Now, under this scheme, should you sell the property, the money must be returned to the super account, including any share of capital gains.
The Labour Party's Policy
With the labour party's policy, Opposition leader Anthony Albanese pitched a different idea to help people buy homes, more so through a scheme called the "Help To Buy" scheme
In this scheme, Labour promises to buy up to 40% of the home along with the buyer and 30% of existing homes. Later on, you can choose to buy back the government's share until you own your entire home. If you do sell the home, then the government will claim their share.
That being said, there are still things to be considered. For example, first time home buyers will need to save at least 2% of the minimum deposit, and the scheme is only given to those earning less than $90,000 or couples earning $120,000. Also, the scheme is only open to up to 10,000 individuals every year. Keep in mind that if your income goes above the threshold, then you will have no choice but to start buying back the shares from the government.
Also, property price caps will apply here. For example, in Sydney, the cap is $950,000, while in Melbourne, the cap is $850,000, and so on.
So there you have it, folks. Both parties cannot really be compared as they each have their own way of solving home affordability. Regardless of whichever party wins, however, always know that mortgage companies will act accordingly and still offer policies that will help you achieve your dream home. So, be sure to continue building up your credit score and the like, as that will help you secure affordable loans that will benefit you financially!
Wealthy You is an Australian mortgage company that services Sydney home buyers with a variety of mortgage solutions to meet any specific need. If you are looking for the best home loans in Sydney, get in touch with us today!