Buy the house - just not the land
Nadia Alaeddin, 20 and Blake Mooney , 24, at their new Trott Park Home. Source: The Advertiser
HOMEBUYERS struggling to get into the market could get a "soft entry" of buying their first home.
Adelaide-based credit union Community CPS wants to copy a Canberra scheme that could save borrowers more than $550 on monthly loan repayments and cut their upfront deposit.
The Canberra land rent scheme lets borrowers take out a loan for a house while the ACT government holds on to the land, charging annual rent of up to 4 per cent of the land value.
Community CPS chief executive Robert Keogh said the scheme, if introduced here, would offer an innovative solution to problems of housing affordability by saving up-front costs and deposits.
"As property prices continue to rise, an innovative scheme such as this would give people the chance to take a more phased approach to entering the property market," he said. "We have already seen it can be done interstate and we think there is potential for it to work in SA."
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He said the product was still in its infancy - the credit union is yet to speak with the State Government - but had seen success in the ACT where $15 million was lent in the first year.
The Government might transfer ownership of the land at the first sale but it is not clear how the value of the land and the benefits of any capital gain would be apportioned in SA.
However, first-home buyers would only need to borrow for a home and not the underlying land, a move that would save $550 a month if land was valued at $150,000 and the Government charged a 4 per cent land rental.
Playford Council was inundated with calls in 2007 after it offered a shared equity scheme for 11 homes at Brahma Lodge. A similar scheme will be offered at the St Clare development at Cheltenham for six homes.
Housing Minister Jennifer Rankine said such programs showed the private sector that affordable solutions could be found but raised questions about land values under the scheme.
First-home buyer Nadia Alaeddin, 20, of Trott Park, said she and her partner saved the money for their purchase but any scheme that cut the need to save a deposit would help buyers.
"It is the deposit that is getting everybody," she said. "At least you would have the house."
- Russell Emmerson
- From: The Advertiser
- March 16, 2011 12:00AM
Nadia Alaeddin, 20 and Blake Mooney , 24, at their new Trott Park Home. Source: The Advertiser
HOMEBUYERS struggling to get into the market could get a "soft entry" of buying their first home.
Adelaide-based credit union Community CPS wants to copy a Canberra scheme that could save borrowers more than $550 on monthly loan repayments and cut their upfront deposit.
The Canberra land rent scheme lets borrowers take out a loan for a house while the ACT government holds on to the land, charging annual rent of up to 4 per cent of the land value.
Community CPS chief executive Robert Keogh said the scheme, if introduced here, would offer an innovative solution to problems of housing affordability by saving up-front costs and deposits.
"As property prices continue to rise, an innovative scheme such as this would give people the chance to take a more phased approach to entering the property market," he said. "We have already seen it can be done interstate and we think there is potential for it to work in SA."
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
He said the product was still in its infancy - the credit union is yet to speak with the State Government - but had seen success in the ACT where $15 million was lent in the first year.
The Government might transfer ownership of the land at the first sale but it is not clear how the value of the land and the benefits of any capital gain would be apportioned in SA.
However, first-home buyers would only need to borrow for a home and not the underlying land, a move that would save $550 a month if land was valued at $150,000 and the Government charged a 4 per cent land rental.
Playford Council was inundated with calls in 2007 after it offered a shared equity scheme for 11 homes at Brahma Lodge. A similar scheme will be offered at the St Clare development at Cheltenham for six homes.
Housing Minister Jennifer Rankine said such programs showed the private sector that affordable solutions could be found but raised questions about land values under the scheme.
First-home buyer Nadia Alaeddin, 20, of Trott Park, said she and her partner saved the money for their purchase but any scheme that cut the need to save a deposit would help buyers.
"It is the deposit that is getting everybody," she said. "At least you would have the house."
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