shared homeownership options scheme

A proposal to introduce shared homeownership options will be launched to provide a new alternative for those struggling to enter one of the most expensive housing markets in the world.

The proposal, developed by a coalition of NSW community housing associations and peak bodies, comes as IMF figures show Australia is third only to Belgium and Canada when it comes to sky rocketing housing prices.

The initiative would see an individual jointly purchase a new dwelling with a community housing association, obtain a standard mortgage from a financial institution and enter into a formal co-ownership agreement.

?It is targeted at households earning between $70,000 to $100,000 a year who are able to afford to buy between 25% and 80% of the purchase price of a new dwelling built by the community housing association.?

Ms Peters said the initiative should be a no brainer. ?This initiative does not require government assistance, other than to correct an anomaly with the First Home Owner Grant. It is self funding, does not divert resources away from social housing and is designed to prevent people entering into unaffordable repayment obligations.

?Everybody wins. Buying 50% of a new apartment is clearly more affordable than buying 100%, but there are no giveaways involved. The community housing provider retains its share of the dwelling and generates a return on its investment.?

http://ncoss.org.au/resources/140619-RDA-shared-home-ownership-report.pdf
 
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