Home ownership could become more achievable for Central Coast teachers, nurses, police, single parents and older singles with the State Government set to trial a $780.4M shared equity scheme next year.
Premier Dominic Perrottet said under the scheme, to be funded under the State Budget, the Government would contribute an equity share up to 40 per cent for a new property or up to 30 per cent for an existing property purchased by eligible buyers.
“One of the Government’s priorities is to make home ownership a reality for more people across our state and allow people to live closer to where they want to work, live and raise a family,” Perrottet said.
“We are continuing to invest in our people to transform our state as we embark on delivering what matters to make daily life better.”
Treasurer Matt Kean said many older singles struggled to find secure housing, with the number of women aged over 55 among the fastest growing cohort of homeless people in the nation.
“Housing security is the bedrock of financial security,” Kean said.
“A safe and secure home is fundamental to allow people to earn an income, care for their loved ones and pursue their own interests and aspirations.”
Minister for Homes, Anthony Roberts, said the scheme would not only help participants overcome the deposit barrier to home ownership, but reduce the size of their mortgage and its repayments.
“This scheme forms part of a broader housing package of $2.8N,” Roberts said.
Under the NSW Government’s shared equity trial up to 3,000 spots will be available each year for two financial years and key worker first home buyers who are nurses, teachers or police – as well as older singles over 50 and single parents with a child or children under 18 years old can apply.
Participants must have a maximum gross income of $90,000 for singles and $120,000 for couples and must have a minimum deposit of 2 per cent of the purchase price.
The Government will take a maximum equity contribution of 40 per cent for a new home and 30 per cent for an established home and the maximum value of the property that can be purchased under the scheme is $950,000 in Sydney and regional centres including the Central Coast, Illawarra, Lake Macquarie, Newcastle and the North Coast of NSW, and $600,000 in other parts of NSW.
The scheme is planned to begin in January 2023.
Primary source: Media release, Jun 19, 2022 NSW Government