Buying a house

Buying a house from Housing Tasmania

Homeshare - Buying A HouseYou may be able to buy the house you are currently renting from Housing Tasmania or a house that Housing Tasmania offers for sale on the website at www.dhhs.tas.gov.au/housing

If you buy a house from Housing Tasmania, they will pay for the cost of getting an independent building report.

There is also help to assist you to replace essential major items in your house if they fail, for example the hot water cylinder. The Essential Maintenance Package (EMP) lets you make as many claims as you need, up to a limit of $2,000 within two years of purchase. The EMP may also be used for electrical checks.

Buying a house and land package

If you buy land (maximum size is five acres or two hectares) you must also have your building plans and specifications ready.You can purchase land on the open market under HomeShare in any location. The sale agreement must be prepared by the Crown Solicitor, and you cannot sign a conventional real estate contract. Ask your real estate agent to contact Tassie Home Loans for more information.

Housing Tasmania also supports HomeShare by releasing land packages specifically for the scheme. Better Housing Futures involves the transfer of management of 4,000 Housing Tasmania properties and vacant land to community housing organisations in numerous suburbs around Tasmania. Options may also be available through Better Housing Futures.

You may already own land that you want to build your house on with help from HomeShare. Your equity in the land must be less than $65,569. Equity is the difference between what the land is worth and how much your loan is. This is calculated as follows:

Land value: $90,000
Less the loan balance: $55,000
Equity held: $35,000

The existing loan for your land would be paid out and become part of the new HomeShare Loan.

Buying a newly constructed house

If you buy a newly constructed house on the open market, you and the Director of Housing buy the house together.

You will be required to borrow the maximum amount the Bank approves.

The amount of the Director’s share will then depend on the purchase price and the size of your loan. However the Director’s share will be capped at 30 per cent of the price, up to a maximum of $59,119 for house and land packages.

Example: Jane wants to buy a new constructed house for $245 000. This will involve additional costs of $13,000. To purchase the house Jane will need $258,000. The Bank will give Jane a maximum loan of $183,750.
With $20,000 from the First Home Builder Boost, Jane has $203,750 towards buying the house. The Director would contribute the remaining $54,250 to buy a 22.1 per cent share in the house. Jane would buy the other 77.9% share of the house.

Do I have to live in the house?

Yes. Under the terms of the Agreement and the mortgage, you must live in the house you buy (it has to be your main residence).

You cannot rent out the house. If you have to leave the property (for reasons such as transfer of employment or illness) you must contact Tassie Home Loans to discuss your particular circumstances.

Can I renovate my home?

You can improve the property at any time so long as you comply with the terms in the Agreement.

Homeshare - Buying A HouseGenerally, if the work does not require approval from the relevant authority (local council) then you do not have to notify Housing Tasmania, but you might have to notify Bendigo and Adelaide Bank Limited.

If the work is major such as adding a room, and approval is required by the relevant authority, you must obtain approval from Housing Tasmania and from Bendigo and Adelaide Bank Limited.

Example: Adding a bedroom may increase the value of the home and the equity may be changed to reflect this (the Director’s share may be reduced).

How soon can I buy the Director’s share?

You can choose to buy the Director of Housing’s share in your home at any time.

The Director’s share must be paid out at 30 years. You do this by purchasing the Director’s share, or through selling the house. The value of the Director’s share will be calculated on the market value of the property at that time.

If you have made approved major renovations to the property, the Director’s share may be reduced.

Can I sell my home?

Yes. You may offer the property for sale at any time, provided you first notify Housing Tasmania and comply with the sale process in the Agreement. There is no minimum period of ownership under HomeShare.

If you decide to sell the house, Housing Tasmania may inspect it to ensure that you have maintained it at a reasonable level.

The sale price will be used to calculate the value of the Director’s share as described above.

If the property has been devalued because you have not maintained it properly, the Director may take this into account and adjust the value of the Director’s share so that you bear the loss caused by failure to maintain.

If you sell the property through a real estate agent, the selling agent’s commission will be your responsibility.

Who undertakes valuations?

The Bank will arrange for a market valuation on the property. You will be required to pay for the valuation.

Housing Tasmania will arrange for other required valuations done through the Office of the Valuer General, at no cost to you:

  • when you undertake renovations that require approval
  • when you buy the Director’s share, and
  • before the property is sold as a result of you not meeting your obligations (default).

I’m interested. What should I do next?

You can contact a HomeShare representative to discuss whether this is the right scheme for you.

Homeshare Buying A House

Freecall
1800 687 377

Hobart Office
Tel: 03 6221 5600

Devonport Office
Tel: 03 6421 3800

Launceston Office
Tel: 03 6335 1700



Tasmanian Goverment
Bendigo BankTassie Home Loans
Homeshare