It is very refreshing to see the NSW Government’s new Shared Equity Home Buyer Helper Scheme is designed not only for first home buyers but also for lower income single parents, older singles and first home buyer “key workers” particularly nurses, midwives, paramedics, teachers, early childhood educators and police officers.
First home buyers have a number of grants and benefits available to them and that is not to say they do not deserve this opportunity, however, for single parents who have previously owned property but have been pushed out of the property market due to the almost impossible task of saving a deposit whilst trying to raise and support their children, it is a great opportunity!
The same applies for over 50’s singles. Paying rent and keeping up with the cost of living, does not allow much opportunity to save a deposit.
For single parents and over 50’s, stamp duty is payable. First home buyers remain eligible for first home buyer programs and any stamp duty exemptions or concessions that may apply.
Under the Scheme the NSW Government can contribute up to 40% of the purchase price on new dwellings and 30% on established properties in exchange for an equivalent interest in the property. The property price cannot be more than $950,000 in Sydney & major regional centres (including Newcastle and Lake Macquarie) or $600,000 in regional areas.
The beauty of this Scheme is that while you remain eligible for the initiative you only make repayments on the percentage you need to borrow from the bank, which means lower monthly repayments. There is no requirement for repayment on the portion owned by the Government unless you cease to be eligible for the scheme or you choose to make repayments (which in turn increases your share in the property).
The NSW Government shares in the profits or losses with you when the property is sold.
To be eligible you must:
- Have a minimum deposit of 2% of the purchase price.
- Be at least 18 years old.
- Not earn more than $90,000 for singles and $120,000 for couples.
- Occupy the property as your principal place of residence and you cannot own any other property.
- Maintain and insure the property, pay ongoing property costs such as council rates, body corporate fees and utilities.
- Have borrowing capacity for the balance of the equity in the property.
Overall, I think this is a great opportunity for homebuyers in a wide range of circumstances.
We would love to assist you with your property purchase. Please feel free to phone Michele Rumph on 02 4928 7300.
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