Why go halvesies buying a property with your mate when the government will pay for 40% of it?
Is this a solution?
Maybe? Probably not.
But who knows. I don’t think the government even knows how this could pan out.
Are they buying votes or is this a genuine solution to a growing problem of lack of affordable housing?
What I do know is, that when the government messes with the economy with schemes like this, it can backfire.
Think the building grants; the government throws some money at the building industry and all of the vacant land is snapped up. Builders become too busy, prices rise exponentially, builders go bust, people are stuck with blocks of land and can’t build their houses, people have built houses that are now worth less than what they have paid for them when they are handed the keys.
This isn’t all to do with the grants but it certainly hasn’t helped the situation.
This is such an interesting drawcard by the labor party, which has so many layers to explore. Personally, the government owning a 40% stake in the the property market and where that could end in 10-20 years, (50%, 80% ownership?) has a slight smell of communism in a pretty dress.