Is this it passive?First homebuyers scheme gets $70m...

Is this it passive?



First homebuyers scheme gets $70m kickstart
Chalpat Sonti
October 13, 2008 - 4:21PM
The first homebuyers shared equity scheme is back in business after a $70 million injection from the State government.

However, eligibility criteria have been tightened after the original $300m scheme had to be suspended last month due to oversubscription.

The maximum property value has been reduced to $355,000, from $375,000, in a move Premier Colin Barnett said was aimed at controlling expenditure.

But those who applied under the old scheme - and were approved but did not get any money because of its suspension - could still qualify for the loans through the discretion of Treasurer Troy Buswell.

Under the First Start scheme, the government takes an equity stake in a property and first homebuyers receive a low-interest loan to purchase the rest.

Mr Barnett said the drop in the maximum loan amount would be balanced by the fall in house prices in WA.

Housing affordability could also be improved by releasing more land in outer metropolitan and regional areas.

House and land packages had become unaffordable because the scarcity of land was driving up prices, due to the previous government's policies, Mr Barnett said.

He said he hoped to speed up the development approvals process and was confident it would mean more land becoming available on the market quicker.

Urban Development Institute of Australia WA chief executive Debra Goostrey said that while she welcomed the announcement, she was concerned that the maximum value had been reduced to $355,000.

"(We) understand that the government is acting with caution and we hope that the program will be continued in future budgets," she said.