What is the “Help to Buy” scheme being released by the federal government in 2023?
If you want to buy your own home but your borrowing capacity isn’t quite high enough for the type of home you like, there is a new federal government scheme being released later in 2023 which might work for you! Not everyone loves the scheme and there has been mixed reactions. We have had a few clients say they are not keen on the idea as they don’t like the government owning a percentage of their home but I have to say that I personally do like it!
The advantage of the scheme is that you will potentially be able to buy a home for more than you would normally be able to afford, yet only have a mortgage of the size you CAN afford. In my eyes, that’s a win! The only disadvantage that I can see is that when you sell the property the % of the government share of the property sale goes back to them so if the property has increased in value, you will only get back your % not the full capital gain from the property sale, but given you only own a % of the home I see that as totally fair.
The scheme was announced by the Labor government at the last election and unfortunately, there hasn’t been too much said about it since, so the details are still rather vague. The scheme is being released with the goal of helping low to middle-income earners get into the property market.
We often find that the borrowing capacity for some clients is just that little bit too low to buy something that they would be happy living in. This is where the scheme may work out well…
Get Focused for 2023
Read Help to Buy Your Home by Anita Marshall to find out more about this scheme being released by the federal government in WFO 2023 Apr Issue 4.