No Need to Hit Up Mum and Dad, Uncle Dan to Help Buyers into Their First Home

The Victorian Budget, released on 24 November 2020 announced the $500 million Victorian Homebuyer Fund to help Victorians buy their first home.  The Fund will contribute to the purchase price in exchange for a proportionate equity interest in the property.

Although details are a bit scant at this stage, the policy appears to be an extension of the HomesVic Shared Equity Initiative (HSEI) which started in February 2018.  Eligibility for the HSEI required applicants to:

• be an Australian citizen or have permanent-resident status;
• have been residing in Victoria for the past 2 years;
• be aged 18 years or older;
• be a ‘natural person’ (that is, not an organisation, company, trust, or other body);
• be a first home buyer. You qualify as a first home buyer if you or your spouse do not currently own or previously owned all or part of a residential property;
• be buying the property as your principal place of residence;
• have a deposit of at least 5% made up of genuine savings. Genuine savings means savings that you have accumulated over time. These can include shares and managed funds, if the original investment was made with genuine savings;
• earn no more than $81,025 for sole person households per year, or $102,630 for multiple person households;
• not have other loans or debts that add up to more than $10,000. If you have a HELP debt, that does not count towards the $10,000 limit. This debt limit includes the credit card limit on any credit card/s in your name, not the amount owing;
• not be related to, or associated with, the vendor of the property being purchased; and;
• buy a property that meets the requirements for property type and location as identified by the HSEI.

If you have any queries please contact your Morrows Advisor or Adam Neylon (03 9134 3543) of Morrows Legal.