Dan’s $1.1bn promise to open home markets

PREMIER Daniel Andrews’ government has announced another mammoth round of election promises to the tune of more than $2.7bn.

The first came on Monday with the extended trial of the Victorian Homebuyer Fund, which will pay up to a quarter of the price of house purchases.

Budding Victorian homebuyers could have hundreds of thousands of dollars shaved off what they need for a property deposit under the scheme.

Eligible participants need just 5 per cent of the purchase price upfront while the state government foots up to 25 per cent. The funds would come from a $1.1bn shared equity pile that would be repaid at market value over time or when the property was sold.

To be eligible for the scheme, Victorians must earn less than $128,000 as a single or $204,800 combined.

Homes they’re aiming to buy must be valued below $950,000 in Melbourne and Geelong and $600,000 in regional Victoria. Buyers must also live in the home and not be buying it from a relative.

The scheme was launched in October 2021 and has aided more than 2000 households with buying a home, with the state paying up to 25 per cent of the purchase price.

Another 1000 applicants have already been approved. This is expected to expand by another 7000 people after the initial $500m pilot funding.

The typical Victorian Homebuyer Fund member has paid an average deposit of $35,000 on a property priced around $650,000, with the fund contributing shared equity of $155,000.

Treasurer Tim Pallas said the scheme was aimed at getting prospective buyers into the market faster.

Mr Andrews also pledged to invest a further $1.6bn in upgrades for schools, kindergartens and sporting facilities if re-elected next month.