If you’re a young person in Australia, it’s likely that the question of whether you’ll be able to afford a house has crossed your mind. Surveys show that young Australians are becoming increasingly concerned with the rising costs of living, stagnating wages and home mortgage rates. A surge in inflation in the last few years hasn’t helped matters. What options are available for potential first home owners?

The Morrison Government’s First Home Guarantee Scheme has been a good first step, but younger Australians are still consistently outbid in the housing market. In an $329m housing initiative, Labor Leader Anthony Albanese has committed to providing help for Australians on low to middle incomes in buying houses. This is said to be coming in the form of a commonwealth equity contribution of up to 40% of the purchase price of a new home (30% for an old home).

The program (called Help to Buy) is eligible for Australians with a taxable income of up to $90,000 for individuals and up to $120,000 for couples who have saved a deposit of 2% and qualify for a standard home loan. They must also be Australian citizens and not already own a home.

This new scheme is inspired by programs that already exist in the UK and Western Australia, and over time, the program is projected to provide income for the commonwealth as the government reclaims its equity and share of the capital gain when the houses are sold.

How do you feel about the proposed scheme? Let us know in the comments.