Affordability Program For First-Home Buyers

Affordability Program For First-Home Buyers

A Deposit Solution for First-Home Buyers

AffordAssist is an affordable housing program specifically designed to meet the needs of first-home buyers. It is a corporate solution offered alongside government initiatives with a single purpose to increase first-home ownership in Australia. 

AffordAssist is an affordability program exclusively for first-home buyers; providing the much-needed deposit solution: First-home buyers can buy a property with no-deposit.

 

A Little History

Some years ago I met with the late Honourable Neville Wran (AC, CNZM, QC), who was the Premier of NSW from 1976 to 1986, and other key persons from a company about to list on the stock market and launch an Affordable Housing Scheme.  Our role was to provide the property platform which would manage all aspects from listing to sales: https://login.propertycompass.com.au/.   The scheme was not launched due to the GFC.  I can only imagine how wonderful it would have been for many first-home buyers (and our economy) had the scheme been launched.

Since Then

First-home ownership has continued to decline (a possible all-time low, nationally, of 14%) into a crisis.

From my perspective, the three most important factors influencing first-home ownership are:

  1. Capital growth: Real estate prices are increasing at around 2% greater than household incomes. The compound effect is that it is getting harder to save for a deposit;
  2. Developers/agents: These parties are capitalising on market conditions by overzealous pricing and focusing on investor sales.  There is an incorrect balance of Investors to Owner Occupiers thereby contributing to a long-term adverse social impact. Refer post: Can Property Prices Be Fairer? and
  3. Supply of properties: Estate planning, land releases and council approvals. We are NOT building enough self-sustaining communities. 

“If this is not resolved it will become a major community/social/ economic problem.”

Government solutions alone are simply not enough: Government should not be expected to carry the full weight of any proposed support or solution. Other countries such as UK and Japan already have first home-buyer programs.  Industry must adjust to current community needs and changes. Refer post: Social and affordable housing: What is the moral strategy?

A Solution: AffordAssist

  • AffordAssist provides the much-needed deposit solution: First-home buyers can buy a property with no-deposit;
  • AffordAssist is a reasonable housing program specifically designed to meet the needs of the first home buyer;
  • AffordAssist is a corporate solution offered alongside government initiatives with a single purpose to increase first-home ownership in Australia;
  • AffordAssist is exclusively for first-home buyers and provides:
    • a proprietary Deferred Deposit Agreement (DDA) for 10%* (which can vary between 5%-15%) of the property purchase price;
    • DDA is a personal loan between the seller/buyer;
    • Has no application, mandate or interest charges;
    • The LVR, considering the buyer minimum cash contributions and government grants, is estimated to be less than 85%;
    • Applicable for all property types and land;
    • Free service to the buyer; and
    • It provides the seller and the buyer with protection.

This crisis is serious, so real, that many are looking for what is the best way forward: Some recent media links:

Posted by: Anthony Aoun