The Greens are best advised to keep well away from Labor’s ‘Help to Buy’ aimed at leveraging low-income households into the housing market.
The ‘Help to Buy’ program targets households on approximately $90K. With a two per cent deposit on a dwelling capped at $750K purchase price in regional Australia, the government will take up 30 per cent equity on an established dwelling, or 40 per cent equity on a new dwelling. No interest is payable on this equity. The balance is expected to be in the form of a mortgage.
I’ve crunched the numbers. Income, less tax and Medicare, and with no other deductions, leaves a household on $1,390/week. In consultation with a local mortgage provider I would be expected to pay 54 per cent of my weekly income on an established dwelling, and 45 per cent on a new dwelling.
I didn’t feel inspired, but I looked at what was on the market for $750K… I gave up!
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