Victoria opens applications for shared equity housing scheme
The scheme will assist low income singles and couples.
The HomesVic scheme will allow low income singles and couples who don't qualify for public housing to enter into a shared equity agreement with the state government. The scheme will provide up to 25% of the purchase price of a home, with the government recouping its share when the house is sold.
The scheme will target applicants with incomes of up to $75,000 for singles and $95,000 for couples. Buyers will have to provide a 5% deposit.
The HomesVic scheme is currently only open to 400 applicants, but Housing Industry Association (HIA) senior spokesperson Kristin Brookfield called the scheme "a good start".
“The HIA has supported similar schemes in other states such as ACT (Land Rent) and in WA (Keystart) for many years,” Brookfield said.
Brookfield said the scheme would help the group of borrowers most affected by the lack of housing affordability in Melbourne and Victoria.
"HIA figures show that the typical stamp duty bill on homes in Victoria has risen by 4,000 percent since 1982. With the median price of a Melbourne dwelling at $720,417, this makes buying a house a pipe dream for so many low income young people," she said.