How first-home buyers could LOSE money if they purchase a property under Labor’s 40 per cent plan

Prime Minister Anthony Albanese’s plan for the government to buy a 40 per cent stake in first-home buyers’ properties could backfire, real estate experts fear.

Labor’s Help to Buy Scheme assists individuals earning up to $90,000 and couples on a combined income of $120,000. 

From July 2022, property newcomers can apply for one of 10,000 places.

This would see the government buy 40 per cent of a new home and 30 per cent of an existing home if a first-home buyer has a deposit of at least two per cent.

But CoreLogic research director Tim Lawless said the scheme was risky with the big banks forecasting a slide in house prices thanks to rising interest rates.