Nurses, teachers and council workers may now be eligible to get a helping hand with their deposit on a new home.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
In a scheme similar to that announced by the Victorian government, eligible low to middle-income earners could have their deposit taken care of by not-for-profit organisation BuyAssist Australia.
Homebuyers will be able to acquire mainly three-bedroom approved townhouses in either Albion Park Rail, Berkeley or Shell Heights.
The minimum financial support offered is 25 per cent of the purchase price, with the balance funded by a traditional bank loan.
“We’re providing an interest free (not a cost free) loan to support a purchase of a property,” said BuyAssist CEO Mark Flack.
“We’re targeting people who can afford and be qualified by a normal bank [loan] for say 75 to 85 per cent of the purchase price and we provide the balance or the deposit as a second mortgage.
“We don’t own any of the property, they own it 100 per cent. But when they sell it in the future, and if we put in 25 per cent then we get 25 per cent of the market value.”
So, the organisation will be entitled to an agreed share of the properties future value as repayment of the support provided – which is usually repaid when the property is refinanced or sold.
BuyAssist is a subsidiary of the not-for-profit National Affordable Housing Consortium (NAHC) and has partnered with Illawarra construction company Hyperbuild to provide 200 new homes for the scheme.
Hyperbuild managing director Theo Pasialis said the scheme worked successfully in the UK and was thrilled the Illawarra could be the first area in NSW to take it on board.
“We’re not doing anything different to what we normally do … architecturally designed homes,” Mr Pasialis said.
“The future generation needs to be in a position where they can move into their own place.
“Giving people the opportunity to have their own home, to live in their own home is what everybody wants. Kids are worried these days about how are they going to afford housing when they see prices are going through the roof.
“It puts them before the eight ball before they’re even starting to work.”
Originally based in Sydney, Mr Pasialis chose to relocate his company south a year ago because he said there were more opportunities.
“We believe in the Illawarra, we believe housing is more affordable than it is in Western Sydney and there’s more reason for people to be [here],” he said.
“If you look at time taken to travel from the new estates in Western Sydney into the city it takes over an hour a half to get there.
“Whereas the Illawarra it’s beautiful, it’s got everything you need in terms of amenities and infrastructure.”
For more information about the scheme visit: www.buyassistaustralia.com.au