Housing SA has announced that home buyers on moderate incomes looking to break into the housing market will now have twice as long to purchase an affordable home offered under a State Government program.
According to the Agency, the exclusive listing period for buyers eligible to purchase under the HomeSeeker SA affordable homes program has increased from a minimum of 30 to 60 days, for newly listed homes on the program’s website.
“The new 60-day exclusive listing period will apply to private developers who are offering affordable housing on HomeSeeker SA under the 15 per cent Affordable Housing Policy, which encourages developers to incorporate affordable housing into their projects,” the Agency said.
“The new 60-day period will not apply to developments already under contract to deliver homes through HomeSeeker SA unless the developer agrees to this new requirement to further assist eligible buyers,” it said.
“The SA Housing Authority, which is also a builder of affordable homes, will continue to list its newly-built properties on the website for a minimum of 90 days.”
Housing SA said the eligibility criteria for the program had also changed with increases to incomes for couples and singles.
“In the metropolitan areas, single person households earning less than $100,000 a year and couples $130,000 are eligible to purchase a HomeSeeker SA home,” it said.
“In regional areas, singles earning less than $75,000 a year and couples less than $100,000 are eligible.”
It said the Government’s official “affordable housing price point” for homes for sale on HomeSeeker SA is also increasing to a maximum $479,550.
“This compares to the median house price for metropolitan Adelaide of $661,750 in the June 2022 quarter,” it said.
“Not all homes are offered at the maximum price – currently, homes are for sale on the website for as little as $320,000.”
The Agency said that while the maximum price might seem high, affordable loans with the Government backed lender HomeStart reduce the amount people need to borrow to purchase a home drastically, bringing them within reach.
“HomeStart’s Shared Equity Option allows people to partner with HomeStart to get into the housing market, with HomeStart contributing up to 25% of the purchase price, meaning buyers have to borrow less,” it said.
“Repayments are based on borrowings and not the shared equity component, and HomeStart acts as a silent partner who will share in the profit or loss when the house is sold.”
Housing SA said the affordable housing price point is reviewed each year so that people on moderate incomes pay no more than 30 per cent of their before-tax income on their mortgage.
More information on homeseeking with the State can be accessed at this PS News link.
