South Australia might see a spike in market activity after the South Australian government and the HomeStart Finance announced another boost for struggling homebuyers.
Potential buyers can now access a maximum of $45,000 of the Advantage Loan, up from $30,615. Anyone earning up to $60,000 after tax (as opposed to under $45,000) is now eligible for the loan.
The Advantage Loan has a subsidised interest rate equal to inflation, with no repayments due until the standard loan is repaid.
HomeStart chief executive John Oliver said these changes would enable many South Australians to increase their purchasing power and improve the options available to them.
“For some buyers, this could mean the difference between living closer to the city or in a location closer to schools and better amenities – because of expanded suburb choice, while for others it might mean buying a home with an extra bedroom or a bigger yard than they could have afforded originally,” he said.
The Advantage loan was originally introduced to help very low income earners, but it had become apparent to HomeStart that key workers – like nurses and tradies – were now struggling with affordability.
Oliver said that, in order to address this issue, it was crucial to remove some of the barriers to ownership.
“Ideally, it might have a ripple effect on FHBs, spurring on an interest in property and prompting them to buy further properties in the future.”