ECTs could benefit from NSW Government Budget pledge for shared equity housing

ECTs could benefit from NSW Government Budget pledge for shared equity housing

by Freya Lucas

June 22, 2022

Early childhood teachers (ECTs) in New South Wales could benefit from a newly announced NSW Government policy that will invest $780.4 million in a shared equity home ownership scheme

 

The trial scheme has been designed to support key workers like teachers, nurses and police, along with single parents to realise their dream of home ownership with support from the Government, who would contribute an equity share up to 40 per cent for a new property or up to 30 per cent for an existing property purchased by eligible buyers.

 

“One of the Government’s priorities is to make home ownership a reality for more people across our State and allow people to live closer to where they want to work, live and raise a family,” said Premier Dominic Perrottet.

 

With a rising number of women over 55 years of age struggling with homelessness, NSW Treasurer Matt Kean said it was important for his Government to invest in housing security, which he described as “the bedrock of financial security”.

 

As well as supporting participants to overcome the deposit barrier to home ownership, the scheme will reduce mortgage size, and therefore the impact of repayments, Minister for Homes Anthony Roberts continued. 

 

“This scheme forms part of a broader housing package of $2.8 billion,” Mr Roberts said. “It marks another step in the Government’s plan to ensure that every person in NSW has a place to call home.”

 

Key details of the NSW Government’s shared equity trial include:

 

  • Up to 3,000 spots will be available each year for two financial years

 

  • Key worker first home buyers who are nurses, teachers or police – as well as older singles over 50 and single parents with a child or children under 18 years old can apply

 

  • Participants must have a maximum gross income of $90,000 for singles and $120,000 for couples

 

  • Participants must have a minimum deposit of two per cent of the purchase price

 

  • The Government will take a maximum equity contribution of 40 per cent for a new home and 30 per cent for an established home

 

  • The maximum value of the property that can be purchased under the scheme is $950,000 in Sydney and regional centres (including the Central Coast, Illawarra, Lake Macquarie, Newcastle and the North Coast of NSW,) and $600,000 in other parts of NSW.

 

The scheme is planned to begin in January 2023. For more information, please see here

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