How does Labor plan to help first home buyers?

Highlights

• With high inflation and rising interest rates, it may become challenging for first home buyers to get their new home.
• Labor government has two mediums for first home buyers- “help to buy” and “home guarantee scheme”.
• Labor’s first home buyers’ scheme would be applicable to people who have been living in a particular area for more than one year.

 The Labor party has taken over as the new federal government of Australia and people now wonder how the financial and social strategies are going to be. With the election fever finally over, Australians wait to see whether the government will stick to the made promises in the campaigns. 

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Across the Australian population, the first home buyers stand at one of the most sensitive spots. With high inflation and rising interest rates, it may become challenging for first home buyers to proceed with getting their own homes.

The Labor government has two mediums for first home buyers. The first is “help to buy” and the second is the “home guarantee scheme”. Let’s understand where the first home buyers will be positioned in Australia under the Labor party rule. 

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Help to Buy & Home Guarantee schemes

Help to Buy is a shared-equity scheme. Under this scheme, first home buyers would own one portion of the house, and the government will hold the other. The option will be available to around 10,000 low and middle-income earners who do not yet own a property.

The income cutoffs are AU$90,000 for singles and AU$120,000 for couples. Now, the homeowners will need to decide how they are going to pay back the government once they have received the keys to their new house. However, not all details of the “help to buy” scheme is out yet. But this may turn out to be innovative for first home buyers in Australia.

The two already functioning Home Guarantee schemes for first home buyers and single parents will remain in place. The schemes are available for single people making AU$125000 and couples who make AU$200000.

Additionally, Labor’s first home buyers’ scheme would be applicable to people who have been living in a particular area for more than one year. So, now it is to be seen how the implementation of the said schemes takes place under the rule of the newly elected government.