It comes as much welcoming news to the housing market that the Government has funded $780 million to help homeowners and buyers in specific categories.
What is the Shared Equity Scheme?
The NSW Government has announced a shared equity scheme trial to help single parents, older singles and key workers purchase their first home.
As a buyer, you can enter the market with a minimum deposit of 2% on the purchase price. The government will then contribute an equity share of up to 40% on the purchase price of the property.
Who is eligible?
To be eligible you must be either:
• A single parent of a child(s) under the age of 18
• A single person at the age of 50 or above.
• First home buyer key worker such as nurses, teachers or police.
Other key requirements include:
• Gross income must be lower than $90,000 for singles and $120,000 for couples
• Property price must be less than $950,000 in Sydney and major regional areas or less than $650,000 in other regional areas.
• Participant must be 18 years or over and is an Australian/New Zealand citizen or permanent Australian resident.
When does it start and how to apply?
The scheme is planned to begin in January 2023 and will take place over two years from 2023 to 2024. There will be 3,000 places per financial year.
You can apply through the website of an approved lending partner, once applications open.
What costs am I responsible for in this scheme?
As long as you remain eligible for the scheme, there are no requirements to make repayments on the equity contribution nor to be charged for rent or interest. However, once you no longer meet the criteria, they must begin making repayments of the contribution.
You will also be responsible for all purchasing and selling costs which also includes property costs such as council rates, water rates etc.
If I am a first home buyer, can I still claim stamp duty exemptions under this scheme?
The shared equity scheme does not affect other tax arrangements including any duty or land tax concessions. Therefore, as a first home buyer you can still claim a stamp duty exemption.
Can I decide the percentage of equity the NSW Government contributes?
The percentage of equity contribution will be determined once the Government’s lending partner completes a lending assessment.
If you would like to know more details on this shared equity scheme, please click here.
How we can help?
At Wilson & Assoc, our government grant services can help you maximise your eligibility and optimise your claims. We will guide you through the application processes and ensure your compliant with the criteria outlined.
If you’re interested schedule a call with our friendly team now. We are always happy to help!
About Wilson & Assoc
Wilson & Assoc Chartered Accountants provides taxation and business advisory services to individuals, investors and businesses wherever you are based. We provide specialist services to startups and health care providers.
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Disclcaimer: The information provided within this article is general information only. None of the comments in these notes are intended to be advice, whether legal, financial product or professional. You should obtain specific advice regarding your particular circumstances from a tax or legal professional.
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