Unlike the PPP/C’s housing policy, which allows new homeowners to access 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗲𝗹𝗶𝗲𝗳 (𝗠𝗜𝗥) and benefit from what is effectively an 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁-𝗳𝗿𝗲𝗲 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲, APNU’s plan locks people into a deal with hidden costs.
𝗡𝗼 𝗠𝗜𝗥 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 – Rent-to-own buyers would lose out on millions $$ in savings that PPP/C homeowners enjoy. 𝗜𝗺𝗽𝗹𝗶𝗰𝗶𝘁 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀 – APNU’s plan hides the costs in the rent, eroding affordability over time. For example, on a loan value of $10 million @ 5% interest maturing in 20 years, monthly instalment will be around $65,995. This implies an annual interest payment of $292k, or $5.838 million over the life of the loan. This means that under the PPP/C’s current housing policy, on a loan of $10 million, first time home owners stand to save close to $6 million in interest payments over the life of the loan. Conversely, under what APNU proposes, imagine paying a monthly rent of $66,000 for a $10M residential property, you will effectively be paying close to $6 million in interest payments (implicitly).𝗡𝗼 𝗲𝗾𝘂𝗶𝘁𝘆 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲 – As principal balances are written down, homeowners cannot leverage the value of their home to secure capital for business ventures or personal growth.In other words, APNU’s “policy” isn’t empowering – it’s disempowering.
In contrast, the PPP/C continues to deliver 𝗿𝗲𝗮𝗹 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽, 𝗿𝗲𝗮𝗹 𝘀𝗮𝘃𝗶𝗻𝗴𝘀, 𝗮𝗻𝗱 𝗿𝗲𝗮𝗹 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗚𝘂𝘆𝗮𝗻𝗲𝘀𝗲 𝗳𝗮𝗺𝗶𝗹𝗶𝗲𝘀, 𝗮𝗻𝗱 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁𝗹𝘆, 𝗮𝗻𝗰𝗵𝗼𝗿𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗽𝗵𝗶𝗹𝗼𝘀𝗼𝗽𝗵𝘆 𝗼𝗳 𝘄𝗲𝗮𝗹𝘁𝗵 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗽𝗿𝗼𝘀𝗽𝗲𝗿𝗶𝘁𝘆.