A new shared equity affordable housing model is being tested in Australia.
Five per cent of two new release housing areas in Sydney are planned to be set aside for shared-equity affordable housing. Potential owners will be means tested and will own their house as tenants in common (a form of joint ownership) with an investor or welfare agency. Under this model, half of the home, risk and mortgage payments are owned or covered by the investor/welfare agency for at least 10 years. Due to the shortage of affordable housing in Sydney it is anticipated that ballots will need to be held to select purchasers.
Thanks to Charlotte Fitzgerald
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