The Federal Government announces new $700m investment into the Victorian Homebuyer Fund.

One of the core features of the recent federal budget is affordable housing for all Australians, with the Government remarking that “inflation, cost of living pressures, and housing all continue to dominate the fiscal landscape, impacting the lives of Australians’.  In line with this policy and focus, the Federal Government announced a new $700m investment into the Victorian Homebuyer Fund for the 2024 – 2025 financial year. This is great news for all Victorian would-be homeowners who are struggling to save a full deposit. This new investment will enable the fund to help many new families gain entry into the housing market.

What is the Homebuyer Fund?

The Victorian Homebuyer Fund is a shared equity scheme between the Victorian Government and the purchaser, making it easier for Victorians to enter home ownership.

How does the Homebuyer Fund work?

One of the greatest obstacles to home ownership is the increasing difficulty, and length of time, it takes Australians to save the desired 20% deposit. When doing the ‘how much deposit do I need to purchase a house’ calculation on the conventional ideal of having a 20% deposit, it can be a dispiriting realisation that this is not a feat that can be accomplished quickly, shy of robbing a bank.  To help make housing more affordable and achievable, the Homebuyer Fund works to combat this by enabling Victorians with a smaller deposit to purchase without needing someone else, like a parent, to go guarantor or to be lumped with additional bank fees like Lenders Mortgage Insurance (LMI). The government acts as a second purchaser, with their own share in the property, equal to the amount of deposit contributed. This prevents the need for other interventions, like LMI and a guarantor that are not accessible to everyone and  will save you money by reducing your overall mortgage as you have borrowed 70 or 80% compared to 95%.

Who is eligible for the Victorian Homebuyer Fund?
To check your eligibility for the scheme, the State Revenue’s Office has created a tool that can help you check if you could be eligible for the Victorian Homebuyer Fund. It provides general guidance in line with the eligibility criteria but does not constitute a determination of eligibility.
Check your eligibility for the Victorian Homebuyer Fund here.

What else has changed?
In other good news, the previous price cap for regional dwellings has been increased from $600,000 to $700,000. This is great news for regional Victorians as more homes will now be eligible for those that have qualified for the scheme.
For metropolitan areas, the maximum purchase price has remained at $950,000 or less.

More single parents will now also be able to access the scheme with the single parent income threshold increased to match the dual income threshold of $208,775.

What else is important to know?
Participants are required to buy back the government’s share in their property over time through refinancing, using savings, or upon sale of the property. The Victorian Government does not charge interest on its investment in participants’ homes but shares in any capital gains or losses proportionate to its share in the property.

What types of properties are eligible?
Unfortunately, vacant land and houses off the plan are not eligible for the scheme. Homes must have an occupancy permit prior to a contract being signed. This does, however, include the completed remaining apartments at Vic Square & Marco who do have completion certificates.  If you’re looking for an affordable new home boasting city convenience in an architecturally striking built form with modern finishes, then two of our recent apartment projects could be just what you are looking for.

Victoria Square Footscray
Located in Footscray of Melbourne’s inner-west, Victoria Square has you supremely placed to soak up the vibrant atmosphere of this culturally rich suburb. Boasting a unique combination of old and new, this buzzing suburb promises an exceptional lifestyle surrounded by a plethora of amenities with the added benefit of being a short commute or drive into Melbourne’s CBD.

Secure a 2 Bed, 2 Bath, 1 Car Apartment at Victoria Square from $620,000!

Find out more about Victoria Sqaure Apartments here.

Marco Melbourne
Located in Southbank along the Yarra River in Melboune’s CBD, the two 40-storey buildings of Marco Melbourne command a prominent presence on the Melbourne skyline. If city living is your thing, then you have the best of the city on your doorstep moments away from the entertainment precinct along Southbank made up of Crown Casino, bars, restaurants, shopping, the Melbourne Convention and Exhibition Centre, galleries and theatres are all at your fingertips.

Secure a 1 Bed, 1 Bath Apartment at Marco Melbourne for $512,000 or 2 Bed, 1 Bath, for $638,000!

Find out more about Marco Melbourne Apartments here.

In addition to the Victorian Homebuyer Fund, you may also be eligible for a range of other grants, exemptions, or concessions to help make your home buying journey more affordable. Find out more here – Everything to consider as a First Home Buyer.

To check Victorian Homebuyer Fund eligibility criteria and how to apply, head to the Victorian State Revenues Office website.