Aussie idea could gift Kamala the presidency

It’s the Australian bright bulb idea that could give Kamala Harris the electoral momentum she needs to become the 47th President of the United States of America.

It’s the Australian bright bulb idea that could propel Kamala Harris to The White House.

It’s the Australian bright bulb idea that could give Kamala Harris the electoral momentum she needs to become the 45th President of the United States of America.

It’s been a controversial crucial plank in Australian economic policy for several years now and Harris wants to introduce it to America.

As a key part of her proposed economic policies Vice-President Harris is keen to introduce the first homebuyers (FHB) grant for Americans looking to make their initial home purchase.

It’s just the sort of policy voters could be drawn to during the cost of living crisis.

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Australia’s first home buyers scheme could be implemented in America if Kamala Harris is voted in as President.

According to Harris’ policy website, she is aiming to ‘lower costs for middle class families’.

And part of that initiative is aimed at – Helping Americans Buy a Home and Afford Rent.

A crucial part of which is: Expanding home ownership with historic $US25,000 ($38,080) down payment assistance for first-time homebuyers.

According to Harris and her team “there’s no question that saving up enough to afford a down payment is often the most significant barrier for first-time homebuyers”.

“Many Americans work hard at their jobs, save, and pay their rent on time month after month,” her election pitch reads.

“But they cannot save enough, after paying their rent and other bills, to save for a down payment — denying them a shot at owning a home and building wealth.

“As Vice President Harris’s plan starts to expand the supply of entry-level homes, she will, during her first term, provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down-payment assistance, with more generous support for those whose parents did not own a home.”

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Eligible US first homebuyers will be given US$25,000 to get their initial property under Harris’ plan. Picture: Getty

According to Harris: “More than two-thirds of renters identify saving enough for a down-payment as a barrier to buying a home”.

A similar sentiment is espoused by potential first home buyers in Australia.

However the efficacy and value for money of the scheme is very much up in the air.

The First Home Owner Grant Scheme and its successors in Australia’s various states and territories has been running since July 2000.

However cash grants to first homebuyers were first introduced in Australia in 1964 by the Menzies Liberal Government as the Home Savings Grant.

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Aussie first home buyers Aaron Heidke and his wife Kristy and son Josh, 10. Picture: Nigel Hallett

Under the current scheme, a one-off grant is payable to homeowners that satisfy all the eligibility criteria to get their into their first property.

Over the past decade successive Australian Federal Government have spent around $21bn helping first homebuyers get into a property, according to the University of NSW.

Around 92,000 Aussies households become FHBs every year, making up around 20 per cent of residential property transactions.

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Australia’s FHB schemes have cost around $21bn over the past decade alone.

FHB assistance programs are also on offer in Canada, Finland, Germany, Ireland, the UK, Singapore and the Netherlands.

The schemes do provide potential buyers with a pathway to owning their own homes.

However critics of such schemes say all it does is allow those who can afford a home to buy one more quickly, serves to juice up demand and as such force up prices.

It is argued that governments can attack the issue of affordable housing more effectively, efficiently and cheaply by focusing more on tax concessions, such as dropping stamp duty in Australia, and addressing supply side issues.

Harris’ Democrats have already been accused of trying to ‘buy’ votes via its student loan forgiveness schemes and similar criticism has been levelled as their FHB scheme.

“With Vice President Harris’s plan, millions of renters would be able to buy their first homes,” the Democrat Presidential candidate’s pitch continues.

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“Moody’s estimates that Vice President Harris’s housing plan would close the affordable housing gap and lead to a historic 11.7 million more first-time homebuyers, including 2.75 million first-time Black and Latino homeowners.

“This is 3.2 million more first-time homebuyers and 1 million more Black and Latino first-time homebuyers than would take place without the Harris-Walz plan.”

Harris Presidential opponent Donald Trump has not offered to introduce a FHB scheme. So, at the end of the day it will be up to US voters to decide if the policy comes to fruition.

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Originally published as Aussie idea could gift Kamala the presidency