Both major parties are dealing with Australia’s housing affordability issues with short term responses that will only drive up the cost of homes, according to the chief economist at the Centre for Independent Studies, Peter Tulip.
Tulip’s comments come after the federal opposition Labor Party announced its housing affordability strategy on May 1.
The centre-left Labor Party will assist 10,000 eligible Australians with buying newly built homes by bankrolling 40 percent of the cost in exchange for an equity stake; for existing homes, the government will pay 30 percent. Once the mortgage is paid off, the homeowner will choose to either sell off the property or acquire the stake from the government.
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