12 April 2007
SHARED EQUITY EASES ENTRY TO HOUSING MARKET
Chief Minister Jon Stanhope today announced a range of shared equity schemes to help people on low-to-median incomes realise the dream of home ownership.
The schemes are part of the ACT Government’s Affordable Housing Action Plan. They will be available to Canberrans in public housing and community housing, those in transition from private rental to home ownership, and first home buyers.
Shared equity schemes allow homebuyers to purchase a share of their home in partnership with a finance provider. Homebuyers are able to increase their share of equity as their financial circumstances improve.
“Flowing from the Action Plan we will see a range of shared equity schemes introduced into the ACT,” Mr Stanhope said today. “The private rental expansion program, through which we aim to introduce an additional 200-400 private rental dwellings to the market, will incorporate a shared equity element, with the potential for on-selling to eligible tenants.
“Community Housing Canberra, which the Government is helping to expand significantly, will also offer shared equity programs to eligible tenants. Housing ACT proposes to introduce a shared equity program for existing tenants on incomes of $50,000 or more. Eligibility for this program may broaden over time as Housing ACT acquires a range of affordable house and land package products.
“A number of commercial lenders have recently announced shared equity loan products and the Government will encourage more lenders to offer appropriate services. It will also seek expressions of interest from not-for-profit providers to introduce a shared equity scheme for eligible home buyers, particularly first home buyers. This will particularly benefit those who purchase the new house and land packages which were also announced today.”
Mr Stanhope said shared equity and land rent schemes offered genuine choice to those wanting to enter the market.
“Under this Action Plan, homebuyers will have the choice of shared equity or land rental schemes to ease entry into the market. Many will also benefit from the increased threshold for stamp duty concessions and from the greater range of affordable house and land packages,” Mr Stanhope said.
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