The New South Wales government has unveiled a shared housing scheme from January 2023 to help frontline workers and single people over the age of 50.
In this week’s state budget, the New South Wales government will unveil a Shared Equity Scheme to help teachers, nurses, police, single parents and older single people enter the estate market.
Similar to the Federal Government’s ‘Help to Buy’ scheme, the NSW Government will pay part of the purchase price of a property in return for an equivalent ownership share of the property.
The New South Wales Government’s equity contribution is up to 40% of the purchase price of a new home and up to 30% of the purchase price of an existing home.
NSW Premier Dominic Perrottet said one of the state government’s priorities was to make home ownership a reality for more people across the state and enable people to live closer to where they want to work, live and raise a family.
“We continue to invest in our people to transform our state as we commit to delivering what matters to improve the daily lives of people across our state,” the prime minister said.
NSW Treasurer Matt Kean said many elderly single people were struggling to find secure accommodation, with the number of women aged over 55 being among the fastest growing cohort of homeless people in the world. country.
“A safe and secure home is fundamental to enabling people to earn an income, care for loved ones and pursue their own interests and aspirations,” Mr Kean said.
Under the program, the participant must have a minimum deposit of 2% of the purchase price, with no mortgage insurance from the lender required.
Participants in the equity participation program also remain eligible for homeownership assistance and any reductions in property duties or taxes.
The program is expected to start in January 2023 and will accept 3,000 applications per fiscal year in 2022-23 and 2023-24.
NSW Shared Equity Scheme Criteria and Eligibility
The NSW Government Shared Equity Scheme is open to:
- A single parent of a child or children under the age of 18;
- A single person aged 50 or over;
- First-time home buyer key workers who are nurses, teachers or police officers.
Program participants must purchase property priced below $950,000 in Sydney and major regional centers including Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW or priced below $600,000 $ in other regional areas.
In addition, to be eligible for the plan:
- Gross household income must not exceed $90,000 for singles and $120,000 for couples.
- Entrant must be at least 18 years of age and an Australian or New Zealand citizen, or an Australian permanent resident.
- A minimum deposit of 2% of the purchase price is required.
- The participant must occupy the property as their principal place of residence.
- Entrant must not have an interest in land in Australia or overseas at the time of purchase.
- The participant must not be able to service the mortgage without government equity.
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