New govt scheme in Victoria, opinions?

So yesterday in Victoria a new scheme was announced that the govt can contribute up to 25% of the purchase price a home up to the value of $950k.

There are only 3000 spots available and although the govt would own up to 25% of the house until you pay them out, I believe in this hot market it would be a huge help to someone like me.

Of course it would be better to own 100% of your home but hey, who would’ve thought we’d see ourselves in such a crazy market.

Interested in your thoughts. I’m not a first home buyer or an investor.

I’m sure that people that already own houses would probably stick their noses up!!

 

It’s a great idea.

And good to see that it’s income-limited and only for people who have no existing interest in land.

And the recipient has to live in the house.

Also, as the value increases, the percentage of the government’s stake increases. So the government (i.e. the taxpayer) doesn’t lose money.
Homebuyer Fund | State Revenue Office

I think the income cap seems a bit high. I think a couple earning $200,000 or a single earning $120,000 should be able to save for their own deposit.

I’d Ike the focus to be on lower income earners.

 

Agree fully with this, also the purchase price seems high.

If you are looking at 950k, you are going alright

 

We have similar system in Perth for FHB. Diff conditions apply of course

Good initiative

 

I came across comments on local community Facebook page regarding this initiative. Interestingly, those who claim it is too hard to buy a house and think they government should do more were complaining about this. Most of their comments were about the unfairness that the government would own 25% of your home and if it went up in value they would take your profits .

 

Does anyone think this govt scheme will lead to further buyer competition and therefore prices to escalate especially for properties within $950k for Melbourne?

 

The owner-occupier market is HOT at the moment and this is going to add on extra fire to hot boiling water. Eventually, the over $1M market is going to slow down and anything under $1M will be snapped even quicker.
Just my opinion, hope this helps

 

Dan Andrew owning 25% of the house - no way!!

 

I doubt it

May be limited to certain properties that government sources. It may be State housing???
In Perth this scheme was limited to certain areas/suburbs, not necessarily where most will buy

Not all FHB will be attracted to this scheme regardless.

Also FHB may be able to access bank of mum and dad. This is preferable

I doubt this will have a major impact on prices.

 

Seems like this scheme essentially allows you to have a higher quality asset for 'free'?

For example, say without the scheme I only had enough deposit for a 700k property. With this scheme, I can now purchase a 900k property. Even though the government owns a 200k portion, I've essentially bought a better asset for 700k than if I would be able to without the scheme.

Silly question, but does no vested interest in land include another property/apartment?

 

Yup on the website there is a video and they explain that the person can't own any land or properties to be eligible

 

Also @MTR they don’t have to be FHB’s, just not have any current interest in property O/O or IP.