AUSTRALAND has joined forces with St George Bank to help moderate-income families own a brand new quality home for half of the normal price.
The Australand and St George Co-ownership Plan breaks new ground by providing a framework for joint ownership of a residential property with separate title deeds for each share in the property.
The co-owners are the Purchaser, who will reside in the home exclusively and be responsible for maintaining the home, and an Equity Partner, usually a relative or friend.
The Equity Partner will obtain the benefit of any capital gain on their share, but will not generally be entitled to any rent or other return from the Equity Partner’s investment in the property.
The framework permits each owner to separately buy, sell or finance the acquisition of their share of the residential dwelling and sets out the rights and obligations of each owner and their financiers.
Australand’s general manager of national business development Ross Blancato said the plan was formulated in response to a Landcom initiative and it aims to address the pressing issue of housing affordability and the growing inability of key workers to buy a home in close proximity to their work.
The term of the Co-ownership is 10 years after which the property is sold or a new arrangement agreed between the Purchaser and Equity Partner is entered into. However, the term can be varied by mutual agreement.
“The Plan will be rolled out at Australand’s Greenway Views development at
St George Bank’s chief manager of specialised mortgage solutions Bill McCabe said the products will be fully featured including those that offer redraw and interest offset facilities.
“There are no interest rate loadings, customers can obtain any available interest rate discounts and our standard lending policies will also apply.
“Unlike some of the shared equity arrangements being promoted recently, the Australand & St.George Co-ownership Plan gives the purchaser their full share of any future capital gains. The purchaser has 50% of the equity and they also receive the full 50% of any future capital gains. We believe it is the fairest product for the consumer available,” he concluded.
Australian Property Journal
