On the 8th of October the Victorian government announced it is launching the Victorian Homebuyer Fund (VHF) – a $500 million “shared equity” scheme to try and help about 3000 people make their dream of becoming a home owner a reality.
The VHF will be available to Australian over the age of 18 years who don‘t currently have an interest in a property and who meet the income thresholds and other relevant criteria. There is also no requirement to be a first home buyer.
Under the scheme, a 5% deposit is required by homebuyers, with the State government providing up to 25% of the purchase price in exchange for an equivalent share in the property. Over time, owners can buy out the government’s share at market value or should the property be sold the government would recover its stake of the equity at market value at that time.
Aboriginal and Torres Strait Islander home buyers will be eligible for the scheme with a 3.5% deposit and a contribution of up to 35% by the government.
The purchase price of the property must not exceed $950,000 in Metropolitan Melbourne and Geelong or $600,000 in Regional Victoria.
The government believes that the scheme’s implementation of shared equity, will make it easier for those eligible to buy a home by reducing the amount of money required to enter the market
Those who can participate in the VHF will still be eligible for other Victorian government housing schemes, such as the First Home Owner Grant.
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