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What are shared value affordable homes? Who is eligible? Selling a shared value affordable home Repairs, improvements and additions What are shared value affordable homes?
Shared value affordable homes enable people on low or moderate incomes to buy a home that would otherwise be outside their price range without increasing the amount they have to borrow.
Shared value only applies to selected properties available through the Affordable Homes Program. Properties where shared value applies will be clearly marked with 'Shared value home' on the Property Locator.
You buy the property at a reduced, or discounted, price - eg 20% less than the property's market value. The difference between the reduced sale price and the full market value is provided through Housing SA.
You own the property and can sell it, make home improvements or use the equity - eg through refinancing.
When you sell the property you pay Housing SA the original discounted amount - eg 20%, plus a share of any increase in the value of the property. The share of increased value, or appreciation, is based on the percentage of the original discount multiplied by 1.2.
An example of this:
You buy a property for $300,000.
Housing SA arranges for 20% ($60,000) to be discounted and you pay the remaining amount ($240,000).
Later, you sell the property for $350,000 (an increase of $50,000).
Housing SA's share of the increased value is 1.2 times 20% of $50,000 ($12,000).
You repay Housing SA $12,000 plus the original $50,000 - a total of $62,000.
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Who is eligible?
If you are eligible to buy an affordable home you are also eligible to purchase a shared value affordable home.
As with any affordable home, you can obtain finance from the lender of your choice - eg HomeStart Finance.
Shared value affordable homes are made available in selected new developments. All affordable homes are advertised on the Property Locator website - see How to locate an affordable home for more information.
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Selling a shared value affordable home
You can sell at any time provided you have lived in the property continuously for at least six months during your first year of ownership. There is no timeframe in which you have to sell the property.
You may choose to pay out all or a portion of the original discount, plus a share of the property's appreciated value. To do this, contact HomeStart who act on behalf of Housing SA. A valuation will be conducted to establish the value of the property at that time.
If your situation changes, you will still have to pay back the original discount and a share of any increase in value when the property is sold.
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Repairs, improvements and additions
As the owner you are responsible for any repairs or maintenance required, and can carry out improvements or additions to your home.
You must notify HomeStart Finance of any improvements or additions of $10,000 or more. They will organise for a property valuation to establish how much your property is worth before and after the improvements.
When you make improvements, either the actual cost of those improvements or the increase in value that results will be deducted from Housing SA's share of the property. The lower of these two figures is used.
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More information
On this site
Buying and selling
Downloads
Shared value affordable homes (PDF 1MB)
For an alternative version of this document contact the Affordable Homes Program.
Contact
Affordable homes program