As previously predicted, here is a scheme by the Labor would-be-government to pour large amounts of Government debt to prop up housing.
This is the essence of it:
Under the policy, a Labor government would contribute up to 40 per cent of the purchase price of a new home and up to 30 per cent of the purchase price for an existing home.
In Sydney and NSW regional centres, the property price would be capped at $950,000 and could save homebuyers up to $380,000 on a new house and $285,000 on an existing house.
In Melbourne and Victorian regional centres, the property price cap of $850,000 would save people $340,000 on a new house and $255,000 on an existing house.
Looks like the new floor under house prices or, to be more precise – the floor under unit prices, as very soon no house should be available to buy under the scheme limits.
Also the mechanism to let overstretched borrowers exit with no losses when interest rates inch up – replacing bad old borrowers with good new borrowers, whilst keeping prices intact.