Affordable Homes
In order to ensure that all Australian citizens have “access to affordable, safe and sustainable housing,” the Australian government came up with the Australia's National Affordable Housing Agreement (NAHA), to increase ownership of homes.
The problem: The government found that one household out of every 10 in Australia experiences “housing stress,” caused due to 30% of their income going towards paying rent or mortgage. This made it tougher for them to pay for their other basic amenities such as healthcare, education, food, clothing, etc.
Besides, not having affordable homes in Australia gave rise to related problems such as homelessness, financial problems and housing insecurity, putting severe stress on individual families and the national economy.
For people of low income groups, buying a house is next to impossible, considering the amount of down payments and mortgages one has to pay. In January 2009, the government passed this Agreement, which aims to give the poor more benefits while also streamlining the distribution system of benefits and on the other hand, reduce its administrative costs.
Through this law, this body brings down the number of homeless people in Australia by providing them with affordable or low cost housing in mixed ethnic neighborhoods. This is not done in isolation. The government, while providing housing to the poor and disadvantaged, also focuses on enhancing the environmental Increasing home ownership without paying attention to the eco-friendliness of new homes would threaten the environment.
According to this program, people are offered houses to buy costing not more than $250,000.
How to buy Affordable Homes in Australia:
- How eligible are you to buy a house? You are automatically eligible for this program if you are either the tenant of Housing SA or of Community Housing. You must also be 18 years or older, a resident of South Australia, meet all the income and asset limits tests. You should not own any other residential property and be the new owner and occupier of affordable homes / affordable housing.
- Arrange your own finance: Get yourself a loan from the lender of your choice.
- Choose a property that suits your family’s needs: Sites listed on the Property Locator website can be seen and viewed by prospective buyers.
- Furnish proof of your eligibility: After zeroing in a property and written out the purchase form, you must furnish proof of your eligibility at the Housing SA office within five working days. You will have to submit a signed copy of the purchase form, proof of income of the occupant and owner of the home, statutory declarations that confirm that you are an Australian resident and that you do not own any other property, and that you will live on the new property as owners and occupiers. If you are considered eligible, you will receive a proof of eligibility letter. Pass this on to the estate agent, obtain your finances from your lender within 14 days of proving your eligibility.
- Buy your chosen property: Show your estate agent a copy of the letter from your lender stating the maximum amount of money he will lend you and aproof of eligibility letter sent to you by Housing SA. After this, a contract will be written up, a date decided for the settlement to be made and the property will become yours by law.