Australia

Traditionally and ideally, Homebuyers go to the bank with 20% deposit. With 4 bedroom homes costing $1 Million these days, that's $200k. People don't have $200k, that's a problem to be sure.

The proposed solution is to help people who have saved $20k to get into the market. I like that the government is trying to help people get into the market.

I would prefer solutions that lead to houses being cheaper. This solution won't do that. In fact, by making it easier to buy a house at present prices, the government is increasing demand - and therefore house prices. What if instead of increasing demand, the government increased supply? I'm no economist, but if the supply of a product raises to meet demand, prices for that product fall.

Western Australia has been doing this for well over a decade. Like every large purchase you need to review the details of the contract. I have seen people do really well out of it and others not well at all when it comes to selling the property.

This is the best summary I could come up with:

The scheme will run for four years, beginning some time in 2024, and support 40,000 low- and middle-income families to finally secure a place to call home.

Making the announcement this week at the Labor Party's national conference in Brisbane, Prime Minister Anthony Albanese said:

Director of Economic Research at REA Group Cameron Kusher said: "Taxpayer-wise, it is basically a free loan that is being given to help people get into the market."

Cameron Kusher said there's a risk: if property prices drop, the purchaser could end up owing the government more than what they borrowed.

If your income exceeds the annual threshold for two years in a row, you may need to repay the government's contribution — in part or in full.

All Australian states and territories agreed at the cabinet meeting to pass legislation this year, to implement the scheme.

I'm a bot and I'm open source!

This is the equivalent of adding an extra lane to a highway. It will add very temporary relief, then back to the same old same old. This government doesn't have an interest in making housing more affordable.

I see this as a way for the government to earn a quick dollar and de facto get into the housing market.

When the owner buys back the share I doubt it will be calculated at the price the person bought it for. It would be at the market price at the time of the buyback.

I guess it works both ways too? I can see someone buying the minimum 2 percent and if they get something like opal or mascot towers when they sell at a loss the government is the one that loses out. So I can see it as a way to transfer the risk to the government and live in a place without having to pay rent.

The housing policy we’ve seen from Labor has been disastrously bad.

• A refusal to invest in public housing, instead intending to repeat the “social and affordable” model that has already been a dismal failure in Victoria. …well, unless you’re a housing developer.

• Housing targets that focus on commercial builds while we’ve 40+ years of public housing deficit in every state and territory.

• And now this which sees people entering into loans they’d otherwise be told they can’t afford and literally sees the government invested in continuing capital growth of real estate prices for decades to come when the policies we need, properly implemented, would diminish or even end that growth.

Does the 2pc have to be dark or white meat? Asking for a friend.