The Grattan Institute has proposed a shared equity scheme for low-income householders, which would be aimed at addressing what the think tank says is a “national crisis” in housing affordability.
The $220 million scheme would see the National Housing Finance & Investment Corporation (NHFIC) take a 30% stake in a person’s house purchase, with the Corporation taking the same proportion of any capital gains when the house is eventually sold. The prospective buyer would still need to contribute a 5% deposit, and then borrow the remainder from the bank.
Here’s an extract of Grattan’s proposed scheme: