Labor’s housing spokesperson Jason Clare has been on ABC radio spruiking his party’s signature housing scheme, which will see a Labor government help 10,000 modest income earners co-buy a home each year by contributing up to 40 per cent of the purchase price.
Clare said the scheme – which will cost $329 million to administer over four years – was based on similar initiatives in Western Australia and Victoria, and had the potential to make money for taxpayers.
Labor’s campaign spokesman Jason Clare. Credit:Alex Ellinghausen
“The interesting thing about this scheme is that it actually makes taxpayers money,” Clare said.
“It’s an investment, you borrow money, you invest in helping people to buy a home, [and] when they sell the home the government gets the benefit of the capital gain. So does the owner of the house.
“In the Victorian scheme that’s been up and running just for two years, one in six people have already paid out the government’s equity – they’ve bought the government’s share of the house back.”
The Labor MP was asked about criticism that the scheme would help too few people each year, compared with the government’s home guarantee scheme which allows 50,000 people to secure a property with a 5 per cent deposit.
He said the government’s policy targeted a different cohort of people on higher incomes.
“It helps people to buy a home sooner without having to pay mortgage insurance – people who are always going to buy a home but can buy it today rather than waiting another couple of years to save a deposit.”
Labor’s policy, he said, is designed to help people to get a home with a smaller mortgage rather than renting for the rest of their life.
“Let me give you a real-life example of a person I’ve met. Angela on the [NSW] Central Coast. She works at a school canteen. Her husband is a carpenter. They’ve got three kids, [she] wants to buy a house worth about $900,000. The bank won’t lend her that much money, but she can get a loan for about $500,000 to $600,000.”