Single parents, older singles, and frontline workers like teachers, nurses, and police can buy their home with just a two percent deposit thanks to a new NSW government scheme.
The $780m shared equity scheme – a collaborative effort with the federal Labor government – will enable 3000 buyers to enter the market with just two percent of the property’s total value a year.
The government would contribute an equity share of up to 40 percent of the property price for a new home or 30 percent for an existing one.
It’s part of the NSW Government’s $2.8b housing package to be unveiled in the state budget on Tuesday, featuring a plan to reform stamp duty.
Those eligible for the scheme need to have an annual gross income of less than $90,000 if they’re single or $120,000 for couples, with the property’s maximum value being $950,000 in Sydney and some regional centers.
Outside of the Sydney area, property prices will be capped at $600,000.
Camera IconUp to 3000 frontline workers, single parents, and older singles will be helped into the housing market thanks to a shared equity scheme. NCA NewsWire / David Swift Credit: News Corp Australia
Premier Dominic Perrottet said the scheme – which would be available to 3000 frontline workers such as nurses, police, teachers, and singles aged over 50 and single parents – was “innovative”.
“We know housing affordability is becoming a real challenge,” Mr. Perrottet said.
“We want to ensure you have that opportunity … We know home ownership is crucial to growing wealth and the chance people across our state deserve.
“This is a very important announcement.”
Mr. Perrottet said the scheme was in collaboration with the Albanese federal government.
The Prime Minister had taken a similar scheme to the federal election, juxtaposing the Morrison coalition’s plan to allow Australians early access to their superannuation to buy their first home.
“I think (Mr. Albanese’s) scheme makes sense. Let’s give it a go,” Mr. Perrottet said.
“This works hand-in-glove with the federal government’s scheme.”
Camera IconThe NSW Premier said the scheme would help more Australians access the housing market. NCA NewsWire / Martin Ollman Credit: News Corp Australia
Treasurer Matt Kean said the scheme – which will be trialed over two years – was designed to help those struggling nationwide buy their first home.
“This is about helping people reach their goal goalslive their dream,” Mr. Kean said.
“Those cohorts we’re targeting … this will make it easier for people to access the Great Australian Dream.”
He said including older singles would help divorced women, in particular, from falling through the cracks.
“It’s a huge area of growing social need,” Mr. Kean said.
“We want to make it as easy as possible for that cohort to get back on their feet safely.”