Single parents and older singles, as well as frontline workers such as teachers, nurses, and police, will be able to buy their homes with just a two percent down payment thanks to a new government scheme from NSW.
The $780 million shared stock plan — a partnership with the federal Labor government — will allow 3,000 buyers a year to enter the market with just two percent of the property’s total value.
The government would contribute up to 40 percent of the real estate price for a new home or 30 percent for an existing home.
It is part of the NSW government’s $2.8 billion housing package to be unveiled Tuesday in the state budget, which will also include a plan to reform stamp duty.
Those eligible under the scheme must have an annual gross income of less than $90,000 if they are single or $120,000 for couples, with a maximum property value in Sydney and some regional centers of $950,000.
Outside the Sydney area, property prices will be capped at $600,000.
Camera IconUp to 3000 frontline workers, single parents, and older single people are helped on the housing market thanks to a shared equity scheme. NCA NewsWire/David Swift Credit: News Corp Australia
Prime Minister Dominic Perrottet said the scheme — which would be available to 3,000 frontline workers such as nurses, police, teachers, and singles over 50 and single parents — was “innovative”.
“We know housing affordability is going to be a real challenge,” said Perrottet.
“We want to make sure you get that opportunity… We know that home ownership is critical to increasing wealth and the chances people earn throughout our state.
“This is a very important announcement.”
Mr. Perrottet said the plan was in collaboration with the Albanian federal government.
The Prime Minister had adopted a plan similar to the federal election, in addition to the Morrison Coalition’s plan to give Australians early access to their pensions to buy their first home.
‘I think the plan of (Mr. Albanian) makes sense. Let’s try it,” said Perrottet.
“This works hand-in-hand with the federal government’s scheme.”
Camera icon The NSW Prime Minister said the scheme would help more Australians access the housing market. NCA NewsWire/Martin Ollman Credit: News Corp Australia
Treasurer Matt Kean said the plan — which will be piloted over two years — is designed to help people across the state who are struggling to buy their first home.
“This is about helping people achieve their goals and live their dream,” said Mr. Kean.
“Those cohorts we’re targeting … this will make it easier for people to access the Great Australian Dream.”
He said that including older singles would help divorced women fall through the cracks.
“It’s a huge area with a growing social need,” said Mr. Kean.
“We want to make it as easy as possible for that cohort to get back on their feet safely.”
