RBA rings alarm on high debt levels
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Only two per cent deposits are required under one government assistance scheme, allowing hundreds to get into the market, according to recent statistics.
Low-cost housing in excess of $118 million has been bought under the Opening Doors to Affordable Housing program from the WA government, a scheme allowing purchasers to buy with a two per cent deposit, indicated housing minister Terry Redman recently.
A total of 352 buyers have entered the property market under this initiative, which encourages shared ownership with the department of housing, allowing buyers to pay as little as 70 per cent of the property value.
“By sharing ownership of the property with the department, monthly home loan repayments are lower, making it more manageable for families on modest incomes,” said Mr Redman.
This allows home buyers to purchase a property for $190,400 where the value is $300,000.
Since September last year, 577 properties have been made available within these scheme. These range from units to four bedroom homes.
An aim of up to 2,000 properties by 2013 has been pointed to.
This scheme allows investors to still be eligible even with a deposit of two per cent and no savings history, while also avoiding lenders mortgage insurance. Eligible first time buyers can also use their first home owners grant.