MANY CAN NOW DREAM OF HOME OWNERSHIP

ON a weekend where we prepare to celebrate our mums and the mother figures who made meaningful impacts on our lives, the federal government has unveiled a policy that could radically change the long-term futures of many families.

Today the government has announced a home ownership gamechanger, allowing single parents with dependants the ability to enter the property market with a mere 2 per cent deposit.

With a current divorce rate of about 33 per cent in Australia, more and more people are finding themselves financially challenged after the breakdown of a relationship. For many of these parents, keeping their children fed, dressed and educated eats so much into a family’s disposable income that the ability to save a 10 or 20 per cent deposit for a home loan would be entirely out of reach. A deposit target of 2 per cent for sole parents with dependants feels all that more achievable and gives those who perhaps thought home ownership had eluded them the chance to join or reenter the property market.

The policy is all the more timely given the current rental crunch we are experiencing here in Geelong. This week this newspaper reported on a double-income family with a combined income of more than $200,000 who had struggled to find a rental home. The incredible rise in property values locally, combined with a massive population influx and growing appreciation for our way of life, is in danger of pricing people out of our region. If a mortgage repayment is comparable to current rents, all that is missing for many families is the ability to save a hefty deposit.

This policy brings the dream of home ownership back within reach of many local families, and provides hope to sole parents who are already doing it tough.