MP claims to have the solution to housing affordability issue

You’ve no doubt heard a lot about the issue of housing affordability.

And while both sides of politics in Australia claim to have a great idea to solve the crisis, one MP has come up with an entirely different solution altogether.

Nationals MP Andrew Broad has devised a solution to Australia’s housing affordability, and it’s getting some support on social media.

The ABC reports Broad wants the banks to ditch deposits for first home buyers, if they can prove they have a three year history of paying rent.

Under his plan, first home buyers wouldn’t have to pay a deposit if their rent was similar to the cost of their repayments.

He’s arguing that the plan has “serious potential”.

“Essentially what a bank needs to do is see that a person has the capacity to service a loan,” he said.

“What a government needs to do is make sure a person who wants to purchase their first home can get into the property market.”

Most banks require a 20% deposit from first-home buyers, which depending on where you’re buying a property, can be a significant amount of money.

Broad told the ABC that it was a good alternative solution to the calls to get rid of negative gearing.

“There’s a lot of receptiveness to this,” he said.

“This is the space that creative governments can play in, rather than the very populist but unrealistic rhetoric of getting rid of negative gearing.”

What do you think? Is this a good idea?