Home » News » NSW New Scheme to Help First Home Buyers with Deposit
21 Feb, 2022
NSW New Scheme to Help First Home Buyers with Deposit
The NSW Government, led by Premier Dominic Perrottet, has recently introduced a new scheme with the aim to reduce the deposit required for first home buyers and assist Sydney’s current affordability crisis.
Under this new scheme, first home buyers in NSW can now use a state government contribution for their home deposit (which is often 20% of the purchase price). In exchange, you will hand over a part of your properties equity to the government.
The NSW Government’s New “Shared Equity” Scheme
Put it simply, equity is the difference between the value of your home and how much you still have left to pay on your mortgage. And under the new proposed scheme, the NSW government would hold a share or proportional interest of your property.
When the property is sold or through repayments, this equity would then be repaid.
The scheme will include equity against a new or existing home, land in which a home buyer builds a home or equity against the home of a guarantor.
Parents of first home buyers may also transfer equity in their homes to the state government to assist their children in purchasing a new home.
In his speech ahead of voting in four NSW byelections, NSW Premier Dominic Perrottet said the NSW government had a responsibility to develop better ways to help young people enter the property market.
NSW Premier Dominic Perrottet. Picture: NCA NewsWire/Damian Shaw
“Increasingly younger generations think being able to buy their first home is unachievable, and for me, that’s unacceptable,” the Premier said,
“As a parent, I would happily sacrifice some equity in my home if I knew it would give my kids a foot in the door to our state’s property market.”
According to the Sydney Morning Herald, the final details of this new scheme are still being worked out, including whether there will be a cap on the amount that government will contribute or the price of the property or land.
The government is also considering increasing the stock of social, affordable and Aboriginal housing, as well as a program to transition low-income earners from renting to property ownership.
“By supporting industry, we can also enable them to increase housing supply, which will help unlock new ways of providing social and affordable housing, meaning more keys in doors for our state’s most vulnerable people,” Minister for Homes Anthony Roberts said.
The new plan is expected to be a key component of the premier’s commitment to addressing homeownership and affordability ahead of the 2023 state election in NSW.
Sydney’s current Housing Market
According to Domain latest House Price report, the median house price in Sydney in early 2022 is $1.6 million, with an annual growth rate of 33.1%.
At a slightly lower stage of growth, the median price for an apartment in Sydney is just over $800,000.
Dr Nicola Powell, Domain’s chief of research and economics, commented on the gap between the unit and housing affordability.
“We’ve seen record low-interest rates support buyer activity.” Said Dr Powell. “House prices in Sydney have grown four times faster than units, and this is something we’ve seen across most of our capital city markets,”
However, the good news for buyers is that the NSW market could finally be losing some of its relentless momentum.
An increase in housing stock across the city is likely to take the steam out of demand, and a potential interest rate hike could slow growth.
Now, It is expected that the NSW Government’s efforts through new “shared equity” schemes will make it easier for people to buy their own homes.
St Trinity Property Group and its affiliated entities, representatives, agents and related companies (collectively referred to as ST TRINITY PROPERTY GROUP) respect the privacy and security of your Personal Information, as defined below, and comply with the requirements of the Australian Privacy Principles under the Privacy Act 1988 (Cth).
WHAT PERSONAL INFORMATION DO WE COLLECT AND HOLD?
Under the Act Personal Information is defined as information or an opinion about an identified individual, or an individual that is reasonably identifiable, in whatever form and regardless of whether it is true or not (Personal Information). The Act also defines a subset of Personal Information as sensitive information (for example health records, racial or ethnic origin, religious beliefs, criminal records).
The types of Personal Information we collect and hold will depend on the circumstances of collection and on the type of service we are providing. For example, when we are engaged to sell a property, we may collect and hold Personal Information from both the seller and potential buyers such as name, address, email address, telephone numbers, employment details and details about their business.
HOW WE COLLECT PERSONAL INFORMATION
We may collect Personal Information about you directly when you deal with us over the telephone, send us correspondence (whether by letter, fax or email), have contact with us in person, visit our websites or complete hard copy or online forms.
There are also circumstances where we may collect Personal Information about you from someone else. For example, from:
• Market research companies contracted by us to obtain information so that we may improve and market our services;
• Your employer;
• Other agents and valuers who may be involved in the services we provide;
• Property developers who contract us to market properties;
• Publicly available information and databases;
• Any of the companies within the St Trinity Property Group (both local and overseas);
• and Anyone you have authorised to deal with us on your behalf.
We also automatically collect certain information when you visit our websites or our subscribers receive promotional emails from us via cookies and other tracking technology (such as web beacons), some of which may be capable of personally identifying you. Such information includes the type of browser and operating system you are using, your IP address and how you use our websites.
WHY WE COLLECT, HOLD AND USE PERSONAL INFORMATION
We generally collect, hold and use your Personal Information for the purposes for which it is provided to us (which will usually be obvious at the time of collection), related purposes or as permitted or required by law. Such purposes may include:
• Acting as agent for vendors or purchasers in relation to the sale of a property;
• Acting as agent for owners or tenants in relation to the leasing and or valuation of a property;
• Project management services;
• Structured advisory services;
• Town planning services;
• Capital allowances services and other consulting services in relation to the property market;
• Administration of our business, such as collection of overdue commissions or outstanding fees;
• Responding to client enquiries and communicating with you from time to time to maintain contact and keep you updated on the services you have requested;
• Forecasting future needs of our services and general quality assurance and training purposes;
• Engaging in legal proceedings and/or enforcing judgments and/or orders;
• Complying with the applicable legal or regulatory requirements and/or orders of competent authorities;
• Providing you with promotional and marketing information, including market research reports, newsletters, event invitations and/or property market information relating to our products and services which we think may be of interest to you; and Any other purpose identified at the time of collecting your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION
We may disclose your Personal Information to third parties as may be necessary for any of the purposes stated in the above section. Such third parties generally include:
Our third party providers, contractors, consultants, agents and/or representatives (such as law firms, banks, financial institutions, insurers, IT providers, mortgage referral services providers and/or wealth management services providers) who provide services to us or on our behalf, including to:
• Conduct valuations;
• Assist with obtaining payment from creditors;
• Operate data centres;
• Conduct market research;
• Provide advice;
• Potential buyers, tenants, conjunctional real estate agents and brokers for the purpose for which the information was collected or for related purposes (for example to complete a transaction on your behalf or provide you with a service that you requested); Anyone you have authorised to deal with us on your behalf;
• Any of the companies within the St Trinity Property Group and their related companies; Government authorities, regulatory bodies, law enforcement agencies, courts, tribunals and/or parties to the legal proceedings where you have consented to this or we are required or authorised to do so by law;
• Debt collection agencies; and/or Any other third parties identified at the time of collection of your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION OVERSEAS
Some of the third parties listed above to whom we may disclose your Personal Information are located overseas. For example:
Our information technology and business process service providers that are located in countries including (but not limited to) the Indonesia, India and Philippines; and Our overseas clients that are located in the same countries as the companies within the St Trinity Property Group.
However you acknowledge that, by agreeing to the disclosure of your Personal Information to these entities outside of Australia, we will no longer be required to take reasonable steps to ensure the overseas recipient’s compliance with the Australian privacy law in relation to your Personal Information and we will not be liable to you for any breach of the Australian privacy law by these overseas recipients. On this basis, you consent to such disclosure.
ACCESS, UPDATE AND CORRECTION OF PERSONAL INFORMATION
We take reasonable steps to ensure that the Personal Information we hold about you is accurate, complete and up-to-date. However, we also rely on you to advise us of any changes to your Personal Information. If you are able to access your Personal Information by logging on to an account you have with us, it is your responsibility to ensure your information is accurate, complete, relevant and up-to-date.
On request we will provide you with access to the Personal Information we hold about you, including for the purpose of correcting or updating that information, unless otherwise required or permitted by law.
There is no charge for making the request or giving the access to your Personal Information. We will deal with your request within a reasonable period after the request is made.
If we refuse to provide you with access we will provide you with a written notice that, at a minimum, outlines reasons for the refusal and the complaints mechanisms available to you.
If you wish to access the Personal Information we hold about you or to update or correct it, you can either do so by logging on to your account (if you have one) or contact us using the contact details provided below. We will require you to verify your identity and specify what information you require.
SECURITY OF PERSONAL INFORMATION
We take reasonable steps to protect any Personal Information that we hold from misuse, interference and loss and from unauthorised access, alteration and disclosure. For example, we implement IT security procedures including password protection, firewalls and site monitoring and we store your Personal Information on a secure server.we store your Personal Information on a secure server.
However, data protection measures are never completely secure and, despite the measures we have put in place, we cannot guarantee the security of your Personal Information. You must take care to protect your Personal Information (for example, by protecting any usernames and passwords). You should notify us as soon as possible if you become aware of any security breaches.
When you register as a member on our websites, you will be given a choice as to whether you want to receive e-mail messages from us, including newsletters, announcements and e-mail communications about our latest news, products or services. To the extent the relevant local law requires us to seek your consent, we will only send such messages to you if you opt-in. If you do not wish to receive direct marketing calls or materials, you may use the unsubscribe facility in the marketing communication or contact our Chief Privacy Officer using the channels prescribed below. Further, as a registered member with us, you can modify your choice at any time by accessing your registered account with us. We will stop using your Personal Information for direct marketing if you so request.
PRIVACY ON OUR WEBSITES
WHAT IF YOU HAVE A COMPLAINT?
PRIVACY & SITE CHANGES
OUR CONTACT DETAILS
• St Trinity Property Group
• Chief Privacy Officer