Albanese wants to buy a house with me

What's the fine print?

What's the fine print?

Anthony Albanese has a new policy to help first home buyers buy a home that means Labor would own a 30 to 40% stake in your property.

Labor's key election policy announced on Sunday called "Help to Buy" (worth $329m) would be available for up to 10,000 households each year, should Labor win the federal election.

Labor's housing minister Jason Clare told The Australian they might increase the number of available places depending on the "appetite".

Jason Clare spoke to The Australian about the new home buyers policy. Picture: NCA NewsWire / Christian Gilles

How does it work?

For a new house, Labor would pay for up to 40% of it, and for an existing house, they would pay up to 30%.

The homebuyer would need a deposit of just 2% and would need to qualify for a regular home loan from a lender. They would not have to pay lenders mortgage insurance.

You can buy out the government's stake over time, Labor says.

Shared ownership isn't new - the United Kingdom has a scheme by the same name, Help To Buy, and the state governments in Western Australia, South Australia and Victoria have similar measures.

How much can the home cost?

In Sydney/NSW regional centres, the price of the property would need to be $950,000 or less.

With Help To Buy, a home-owner could save up to $380,000 off a mortgage on a new house or $285,000 on an existing house.

In Melbourne/Victorian regional centres, the price of that property would be $850,000 or less.

That's up to $340,000 saved on a new house or $255,000 on an existing house.

In Brisbane, the cap is $650,000.

There are a few suburbs you could buy in the capital cities for these prices. See where here. 

Am I eligible?

You are eligible for the scheme if your income (before tax) is up to $90,000. For couples that increases to up to $120,000. 

Labor leader Anthony Albanese. Picture: Alison Paterson

Is there any fine print?

• You can only sell the property after two years.
• When you go to sell the house and if the value of the property has increased, you will need to split the capital gains with the government (based on the stake you each have in the house).
• You cannot rent the property except under special circumstances and unless you receive an exemption from the government. This includes if you needed to move for compassionate reasons or relocate for work.
• If you renovate the property, you would need to get an independent assessment to claim the added value when you decided to sell. But you get the full value of the renovation, Labor says.
• You would need to insure the home, which is standard banking practice. 

Does Scott Morrison also want to buy a share in my house?

No. Scott Morrison's proposal for affordable housing is slightly different.

The Liberal party expanded its First Home Guarantee Scheme (aka the First Home Loan Deposit Scheme) earlier this year. It would go ahead even if Scott Morrison lost the May election.

It allows first home buyers to purchase a property with as a little as a 5% deposit (or a 2% deposit for single parents).

Most lenders usually require a 20% deposit, but the government would "guarantee"  15% of that. This removes the need for mortgage insurance, which can cost up to $30,000 on a $600,000 mortgage, for example.

Australian Prime Minister Scott Morrison. Picture: Lukas Coch

Last month, Morrison announced they would bump up the number of places on offer from 10,000 to 35,000. 5000 of these spots are reserved for single parents, who only need a 2% deposit.

Morrison also increased the price of properties that could be purchased under the scheme from June 30. 

In Sydney or a NSW regional centre, you could buy a home under this scheme valued at up to $900,000 (up from $800,000 last year).

In Melbourne, the property could cost up to $800,000 (up from $700,000 last year) and in Brisbane, that price is $700,000 (up from $600,00).

What's the difference between the two policies?

Clare told The Australian that while the Government's Home Loan Guarantee Scheme helped first-home buyers enter the market sooner, Labor was targeting lower income households who would be renting for life and genuinely unable to afford a home.

But Morrison argued Australians wouldn't be owning their own home, Albanese would be.

“Our plan is for Australians to own their own home, not for the government and Anthony Albanese to own your home,” he told reporters on Sunday.

“As your equity goes up, they’re going to keep it. They’re going to keep the equity increase that happens in your home.”