Why? The government's minority share rises and falls with the market which can be redeemed at any time by the home owner by buying the government's share. It has the immediate effect of reducing cost of living pressures by reducing the amount of the mortgage loan borrowed and hence repayments. It will help more people into the property market.
LNP policy may satisfy the deposit requirements of lending institutions while compromising the retirement benefits of superannuation, but it does not alleviate affordability of entry. First home buyers will still have to borrow the same amounts as prior to the LNP scheme, albeit with, for those that can afford it, a deposit. The major problem overlooked if not totally ignored by those advocating its merits.
