‘My Home’ restrictions make ownership difficult for first-home buyers

ABC NEWS (Australia)

Eligible Tasmanians can purchase their home through the shared equity scheme, where the state government chips in around 30 per cent of the cost. But some first-home buyers say the many criteria of the scheme makes their offers unattractive to vendors.

Transcript

00:00Looking at a lot of the houses within my budget, it's a pretty small range that I have access

00:08to.

00:09Regan Haitema wants to buy a home, but to afford one, his only option is to go in with

00:15the Tasmanian government.

00:17Under the My Home Shared Equity Scheme, Homes Tasmania will contribute 30% of the cost.

00:24It has to be paid back within 30 years at the current market value.

00:28But first, a lot of things have to fall into place.

00:32Just speaking with Regan, how can I help you?

00:34A couple's annual income can't exceed $112,000, although that doesn't apply to first home

00:41buyers like Regan.

00:43Then there are other boxes to tick.

00:45The property has to be new or pass a building inspection.

00:49But the better the home, the more competition from other buyers.

00:53And in this hot property market, it's the 90-day processing time that has worked against

00:58Regan.

00:59From what I understand, we were the highest bidder there, but the vendor wasn't willing

01:04to wait roughly three months.

01:07Real estate company director Penny Connor says My Home contracts rarely win the home.

01:13The one successful My Home buyer she had offered a sweetener.

01:17Obviously a significantly more amount of money.

01:21She says sellers don't want to wait 90 days.

01:24I'd be encouraging my owners to take something that was more attractive and a quicker timeframe.

01:31Aside from the three-month wait, there are still more restrictions.

01:36My Home participants can only borrow through the Bank of Us and the loan has a higher interest

01:42rate.

01:43Other states that use commercial lenders have got at least two options available.

01:47The thing that does worry me about the scheme though is that the government itself now has

01:51a financial interest in making sure house prices go up.

01:55Despite the obstacles, Homes Tasmania says there are plenty of success stories, with more

02:00than 900 properties sold since 2022.

02:04Bank of Us says, while My Home can be a bit more complicated, it's helping Tasmanians into

02:09home ownership.

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