Shared Equity Scheme NSW - An Affordable Path for First-Time Buyers

/

Blog

The Insider @ Houst
Last updated on
September 13, 2023

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Shared Equity Scheme NSW - An Affordable Path for First-Time Buyers

I hope you enjoy reading this blog post.

If you want my team to just manage your Airbnb for you, click here.

Airbnb Management Services by Houst | Short-Term Rental Experts

About Houst

Houst is a leading property management company specialising in short-term and medium-term bookings in eight countries. With over 7 years of experience and managing over 300,000 bookings, we help homeowners make the most of their properties.

Learn More

If you're a first-time homebuyer in New South Wales (NSW), you've probably encountered the Shared Equity Scheme NSW. This program allows people like you to become homeowners without spending too much money. It's like a helping hand to make homeownership more achievable.

The rollout of this scheme has made getting a first home buyer loan much more accessible. We're here to guide you through all the details because we know it can be overwhelming, especially if you're new to first home buyer grants. So, let’s get started!

Table of Contents

What is the Shared Equity Scheme?

 

The Shared Equity Scheme, now known as the Shared Equity Home Buyer Helper in NSW, is an initiative by the NSW Government. Its main goal is to help eligible single parents, older singles (aged 50+), and key worker first-home buyers become homeowners with just a tiny 2% deposit.

Here's the exciting part: you won't have to worry about paying for Lenders Mortgage Insurance!

This program started in January 2023 and plans to accept up to 3,000 applications over two financial years (2022-2023 and 2023-2024).

How it Works

The government's contribution is determined as a percentage of the purchase price, and the maximum amount depends on whether the property is new or existing. The lending partner, after conducting their assessment, decides this percentage.

For new homes, the NSW Government’s contribution can go as high as 40% of the purchase price, while for existing homes, it can be up to 30%.

The New South Wales Government shares in the costs of purchasing a property with first-time buyers by acquiring a corresponding interest in the property.

Examples:

Single parent in Sydney

Let's consider an eligible single parent in Sydney looking to buy a new home at the maximum price of $950,000. With the 40% government contribution, they could receive a maximum of $380,000. This generous contribution would significantly reduce their monthly mortgage repayments, saving them around $2,200 per month (assuming a 6% interest rate over a 30-year term).

First home buyer teacher in Wagga Wagga

Now, let's look at an eligible first home buyer who is a teacher in Wagga Wagga and is purchasing an existing home at the maximum price of $600,000. With the 30% government contribution, they could receive a maximum of $180,000. This contribution would lead to a noticeable decrease in their monthly mortgage repayments, saving them around $1,080 per month (assuming a 6% interest rate over a 30-year term).

Who Can Apply for the Shared Equity Scheme NSW?

To be eligible for the Shared Equity Scheme, you must meet the following criteria:

Age and Citizenship

You must be 18 years or older. You should be an Australian or New Zealand citizen. (Australian permanent residents can also apply.)

Deposit

You need to have at least a 2% deposit.

Primary Residence

You must occupy the property as your primary residence.

Property Ownership

You should not own an interest in any land in Australia or overseas at the time of purchase.

Financial Capability

You must demonstrate your capability to service home loans with a participating lender along with the government's contribution.

Purchase Costs

You need to comply with all purchasing costs, including stamp duty.

Ongoing Costs

You should be able to cover ongoing costs such as property costs and maintenance.

Property Price

The property you purchase should be less than $950,000 in Sydney and major regional centres (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW) or less than $600,000 in other regional areas.

No Previous Grants

You should not have received any other first home buyer grants, such as the Home Guarantee Scheme. 

Applicants are categorised into three demographic groups:

Single Parents

  • With dependent child/children.
  • Have a gross annual income of not more than $90,000 for singles.
  • Financial assets should be under 45% of the total purchase price if your income is up to $90,000 per year.

Single Persons

  • Not married or in a de facto relationship.
  • Have a gross annual income of not more than $90,000 for singles.
  • Financial assets should be under 65% of the total purchase price.

Key Workers (Teachers, Early Childhood Educators, Nurses, Police Officers, Paramedics)

  • Have a gross annual income of not more than $90,000 for singles and $120,000 for couples.
  • Financial assets should be under 30% of the total purchase price if your income is more than $90,000 annually.

Asset Limits and Contributions

 

Asset limits are a factor too. Your gross income must not exceed $93,200 for singles or $124,200 for couples.

These limits vary depending on property price thresholds, age, gross income, and whether you apply individually or as a couple.

For joint applicants with a combined gross annual income over $93,200, it's 30% of the property purchase price.

For single applicants aged 18 to 49 or joint applicants with a combined gross annual income up to $93,200, it's 45% of the property purchase price.

If you're a single applicant over 50, it's 65% of the property purchase price.

Keep in mind if your financial assets exceed $100,000, you might need to contribute part or all of the amount over $100,000 at settlement, adjusted for the deposit you provided.

Can I Combine the Shared Equity Scheme with Other Government Buyer Assistance Programs?

No, home buyers cannot use both shared-equity scheme and first home buyers assistance scheme. The NSW government's shared-equity trial scheme is quite similar to the one proposed by the Labor government for all first home buyers earning under $90,000 for singles and $120,000 for couples. Since these schemes are essentially identical, you need to choose one. You should check which scheme has more places available when lodging your application.

The NSW government's shared equity scheme does not impact stamp duty concessions or exemptions. If your property qualifies for these concessions or exemptions, you may benefit from waived stamp duty and waived Lenders Mortgage Insurance (LMI) for your home loan. Moreover, considering that the NSW government is contemplating scrapping stamp duty, this significant upfront cost might become a thing of the past.

What Are My Ongoing Responsibilities in the Shared Equity Scheme?

To stay in the program:

  • You'll need to go through an annual review and provide proof that you still meet the requirements.
  • Keep your property in good shape. Any changes or upgrades that could impact its value must get a green light from the government.
  • Be prepared to independently handle property expenses like council rates, body corporate fees, utilities, and loan repayments.

Simplify Your Property Rental with Houst

Houst can help you manage your property, especially if you plan on renting it out on Airbnb or similar platforms. 

With Houst, you can make some extra money by renting your place to travellers, and they handle everything. They help with Airbnb listings, Airbnb bookings, and even Airbnb cleaning up after guests leave. 

So, if you're thinking about sharing your space with travellers, Houst can make it easy and stress-free. They're like your property rental management sidekick, ensuring everything runs smoothly while you sit back and relax.

The Insider @ Houst

The Insider @ Houst

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. If you have hosting inquiries, please write to us at expert@houst.com. For guest inquiries, reach out at guest@houst.com. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

The Insider @ Houst

The Insider @ Houst

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. If you have hosting inquiries, please write to us at expert@houst.com. For guest inquiries, reach out at guest@houst.com. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

Commission-Based
Pricing From

12%
of your
rental revenue
The commission depends on
the property profile and location
free estimate

Complete property management services

We streamline the process of short-term lets and assist in maximising your rental revenue in London.

Listing Management

  • Multi-platform listings
  • Professional photography
  • Listing creation
  • Price optimisation

Guest Management

  • Guest vetting
  • Guest check-ins
  • Linen and toiletries
  • Guest communications

Property Management

  • Cleaning and housekeeping
  • Property maintenance
  • Property insurance
  • Property management software
I hope you enjoy reading this blog post!
If you want my team to just manage your Airbnb for you, just book a call.
Book a call
Click here to Get More Bookings!
See How Houst Can Elevate Your Airbnb’s Visibility
  • Listing Optimisation – Maximise your listing’s potential. Experience tangible growth.
  • Professional Photography – Captivating visuals that instantly attract guests.
  • Guest Screening – Ensuring only the best and safest guests for your property.
BOOK A CALL
Close

We hope you enjoy our blog!

If you would like to find out more about how our team can help you get the most of your Airbnb, just book a call with us.

Thank you for providing your contact information!
Oops! Something went wrong while submitting the form.
J’espère que vous apprécierez la lecture de cet article de blog !
Si vous souhaitez que mon équipe gère simplement votre Airbnb pour vous, réservez simplement un appel.
RÉSERVER UN APPEL
Cliquez ici pour obtenir plus de réservations !
Découvrez comment Houst peut améliorer la visibilité de votre Airbnb
  • Optimisation des annonces – Maximisez le potentiel de votre annonce. Faites l’expérience d’une croissance tangible.
  • Photographie professionnelle – Des visuels captivants qui attirent instantanément les invités.
  • Filtrage des invités – Garantir uniquement les invités les meilleurs et les plus sûrs pour votre propriété.
RÉSERVER UN APPEL
Close
Looking to scale your serviced accommodation?
Join Houst’s partnership program — book a call for details.
BOOK A CALL
Starting your Airbnb business?
Houst can help you get started in the serviced accommodation sector:
  • Fastracked growth: Quick portfolio expansion and up to 20% booking commission for property managers.
  • Guest Support and Tech: 24/7 support and tech streamlined operations, enhancing occupancy and guest service delivery.
  • Pricing Optimisation: Increased earnings with algorithm-based pricing strategies.
BOOK A CALL
Close