This article is from the Australian Property Journal archive
THE Victorian government is asking would-be homeowners to explore their eligibility for their shared equity scheme, as more than 500 Victorians achieve homeownership since its launch.
The $500 million Victorian Homebuyer Fund has seen more than $75 million in shared equity funding approved since its launch in October 2021, enabling 500 Victorians to reach settlement on their properties.
The median price of properties purchased under the scheme have been priced at approximately $630,000, with a median equity contribution of around $150,000.
The maximum purchase price under the scheme cannot exceed $950,000 in Melbourne and Geelong, and $600,000 in regional Victoria.
There have also been hundreds of further approvals that have enabled participants to make an offer on homes across the state.
Currently the scheme was the capacity to aid as many as 3,000 applicants to enter home-ownership.
As far as single holds are concerned, the fund has primarily been supporting people with incomes ranging from $40,000 to $80,000, with demand predominately coming from those within the age of 25-44. Participants must earn no more than $125,000 for singles or a combined $200,000 for multiple person households.
“We know it can take years to save for a home deposit and this is a really practical way that we can help Victorians get into their own homes sooner,” said Tim Pallas, treasurer.
“More than 500 people have already received the keys to move in – that’s a brilliant outcome.”
Under the fund, the typical home deposit of 15% is reduced to 5%, with 25% towards the property price contributed for that equivalent share of the asset.
For Aboriginal and Torres Strait Islander homebuyers deposits can be from 3.5% with a government contribution up to 35%.
The scheme is designed so homebuyers can eventually buy out the governments share at market value, with payments being reinvested into the fund.
Outside of metropolitan Melbourne and Geelong, there are 42 eligible regional locations approved participants can purchase in, including Bendigo, Mildura, Shepparton, Ballarat, Daylesford, Warragul, Sale, Gisborne, Portland, Echuca and Bairnsdale.
