We all know what's going on.. no need to rehash. So here is an attempt at a solution.
This can get people out of a renter black hole, and allows kids to get into the market.
It also makes customers not dependant on market growth so should slow down house price rises, and reduce the overseas/wealthy investor market interest.
- A government owned Not for Profit Bank.(let's call it GovBank).
- For Australian citizens who have lived in Australia for 10 years minimum.
- For homes purchase price under $1 million. Provide Zero interest loans.
- Waived stamp duty, waived land tax, 5% deposit.
- Principle place of residence only, but doesn't have to be first home. (Cannot apply to 2nd or more title, but can be rented out, if owner is currently renting elsewhere).
- GovBank loans the amount, at 0% interest.
- At sale of property, GovBank takes 80% of capitol gains. You only get 20%. (Less investment costs into renovation/extensions/upgrades e.g. add a pool or whatever).
- Only available to those earning less than $400k gross p.a.
- Once loan is paid off and house is owned outright, you must continue to pay same loan amount for a further 2 years. Which is net profit to bank. 2 year payment amount is reduced from the 80% capitol gains value. This way noone loses on making money, but GovBank doesn't have to wait for you to sell to make profit.
This can get people out of a renter black hole, and allows kids to get into the market.
It also makes customers not dependant on market growth so should slow down house price rises, and reduce the overseas/wealthy investor market interest.