Buyers earning up to $180,000 on a single income will be able to access a new home loan as part of the state government's bid to have more people living in apartments closer to the Perth CBD.
Buyers earning up to $180,000 on a single income will be able to access a new home loan as part of the state government's bid to have more people living in apartments closer to the Perth CBD.
The Urban Connect Home Loan is a pilot program under Keystart, a provider of low deposit home loans.
The loans will be available for off-the-plan, new and established apartments under a two-year trial capped at 300 loans.
The new home loan product can be used for medium and high-density apartments with two or more bedrooms in a complex of two storeys or more, close to major train stations or the CBD.
Limitations for the Urban Connect Home Loan include a sole income of $180,000 for single dwellers with a purchase limit of up to $550,000 or a combined income of $200,000 for couples and families, with a property purchase limit of up to $650,000.
At a press conference in the suburb of Manning today, Premier Mark McGowan said the government wanted to see more apartments built around Metronet precincts or near the CBD.
"The more people who live close to the city, the stronger the city becomes," he said.
"That's (Urban Connect Home Loan) designed to ensure there is easier access to finance to buy an apartment, a two bedroom, in proximity to train stations and the city."
Housing and Lands minister John Carey said Manning was one of the key examples for more apartment construction.
"Where we’re standing today is a great example of high density ... it's close to shops, apartments here are eligible for this scheme," he said.
"Apartments based on location and price of land can cost more that is why we increased the cap."
Keystart chief executive Paul Graham said saving for a deposit to secure finance was the biggest barrier to home ownership for most people and was usually being saved while paying rent.
“By making home ownership more accessible to Western Australians, especially in urban areas and locations close to transport infrastructure, we can support infill targets and contribute to vibrant and engaged communities around greater Perth," he said.
The most recent annual data from property consultant Urbis found Perth new apartment market recorded higher sales in the third quarter of 2021 compared to 2019 and the first half of 2020.
Urbis forecast the supply to increase slightly this year but still be at relatively low levels with about 1,300 apartments still due to be completed.
Other initiatives for homeowners include 50 per cent land tax concession for new build-to-rent projects starting July 1 next year, a stamp duty rebate of up to 100 per cent for off-the-plan apartments, density bonus for private project with five per cent social housing and updated Keystart loan products.
"This is all part of a bigger picture on government reform to provide housing choice," Mr Carey said.
"This is about creating and delivering more affordable housing options for Western Australians near key public transport locations and amenities."
