Under the plan, first-time buyers would receive a contribution from the state government for their housing deposit in return for equity in the property. This would be repaid in instalments or when the property is sold. Full details are yet to be announced including eligibility requirements, price thresholds and whether there will be a cap on the amount the government will contribute.
AMP chief economist Shane Oliver says the shared equity scheme will be “band-aid solution” at best and counterproductive at worst.“To the extent that it brings forward demand, there’s a risk this worsens the problem and benefits those already in the property market through higher prices,” he said. Even so, some experts are reassessing the role of shared equity schemes. Grattan Institute economist Brendan Coates has concluded house prices in Australia have increased so much relative to incomes that government shared equity programs may now be the only hope for many people to purchase a property.
Coates says shared equity schemes can be designed to minimise upward pressure on prices while allowing access to groups in danger of being locked out of the housing market, especially low-income families and single women aged over 40.
MattWadeSMH You’re in the wrong currency. Just buy bitcoin, houses are getting cheaper relative to btc.
MattWadeSMH It's just going to artificially inflate the price again
MattWadeSMH A shared ownership plan is a good idea. You buy a % of the house, say 50%. You then pay a nominal rent to the Government every month. The Government puts up 50% of the purchase price. As time goes on you can buy further parts in 10% blocks at the market rate of the day.
MattWadeSMH Hmmm injecting more money into a heated market so people can bid higher for property helps affordability?