1 00:00:00,160 --> 00:00:04,360 Speaker 1: Hope Housing. What you need to know before you say yes. Hello, 2 00:00:04,400 --> 00:00:07,000 Speaker 1: and welcome to Sugar Mama's Fireplay, the podcast where we 3 00:00:07,040 --> 00:00:11,280 Speaker 1: ignite your financial independence, fuel your early retirement dreams, and 4 00:00:11,440 --> 00:00:16,240 Speaker 1: empower you to build long term, sustainable financial freedom and independence. 5 00:00:16,320 --> 00:00:19,560 Speaker 1: I am your host, financial planner, Canna Campbell. Now, today's 6 00:00:19,600 --> 00:00:23,680 Speaker 1: episode is actually a subscriber request. We're breaking down a 7 00:00:23,880 --> 00:00:28,760 Speaker 1: very specific and increasingly talked about topic, Hope Housing. Now, 8 00:00:28,800 --> 00:00:32,239 Speaker 1: this is a shared equity housing model that's targeted at 9 00:00:32,520 --> 00:00:37,040 Speaker 1: essential workers who are trying to build and buy homes 10 00:00:37,360 --> 00:00:40,480 Speaker 1: in areas that they might not otherwise be afford to buy, 11 00:00:40,520 --> 00:00:42,559 Speaker 1: that is, they've been priced out of. So if you 12 00:00:42,680 --> 00:00:46,560 Speaker 1: are curious about this scheme and you're considering applying, or 13 00:00:46,600 --> 00:00:49,520 Speaker 1: you're just wondering if it might help you or someone 14 00:00:49,560 --> 00:00:51,560 Speaker 1: you know get a step or a foot on the 15 00:00:51,600 --> 00:00:54,760 Speaker 1: property ladder fast, this is the perfect episode for you. 16 00:00:55,040 --> 00:00:57,240 Speaker 1: And of course, if you have other requests, you can 17 00:00:57,240 --> 00:00:59,920 Speaker 1: always DM them to me. But while this may sound 18 00:01:00,360 --> 00:01:03,360 Speaker 1: like a really generous and promising on the surface that 19 00:01:03,480 --> 00:01:07,240 Speaker 1: is Hope Housing, there are some important caveats and risks 20 00:01:07,280 --> 00:01:10,720 Speaker 1: that you absolutely must be aware of. So please know 21 00:01:10,800 --> 00:01:13,360 Speaker 1: that I'm not recommending it, nor am I recommending it. 22 00:01:13,400 --> 00:01:15,400 Speaker 1: I'm going to go through all the things that you 23 00:01:15,480 --> 00:01:17,600 Speaker 1: should know and understand about this so that you can 24 00:01:17,640 --> 00:01:21,240 Speaker 1: make your own educated, informed decision. So let's unpack what 25 00:01:21,319 --> 00:01:24,120 Speaker 1: this hope housing is really all about and whether it 26 00:01:24,280 --> 00:01:27,160 Speaker 1: aligns with your financial goals and of course your long 27 00:01:27,280 --> 00:01:40,959 Speaker 1: term plans. All right, so what is hope housing. Hope 28 00:01:41,000 --> 00:01:44,520 Speaker 1: Housing is essentially a shared equity scheme that helps essential 29 00:01:44,600 --> 00:01:48,280 Speaker 1: workers by property in key communities. What they are doing 30 00:01:48,360 --> 00:01:52,280 Speaker 1: is co investing with you, so you contribute, say seventy 31 00:01:52,280 --> 00:01:54,960 Speaker 1: percent of the purchase price, and Hope Housing covers the 32 00:01:55,000 --> 00:01:58,840 Speaker 1: remaining thirty percent. They don't charge you rent or interest 33 00:01:58,880 --> 00:02:01,560 Speaker 1: on their portion, but they do share in the future 34 00:02:01,800 --> 00:02:05,680 Speaker 1: capital growth. So when you go to sell, they receive 35 00:02:05,920 --> 00:02:10,880 Speaker 1: back their share of the home's total sale price, including 36 00:02:10,919 --> 00:02:15,080 Speaker 1: of course any growth or the gains. And this includes 37 00:02:15,240 --> 00:02:17,359 Speaker 1: the gains that you actually may have actually paid for 38 00:02:17,440 --> 00:02:22,440 Speaker 1: yourself through doing renovations and improvements. Now, this might help 39 00:02:22,480 --> 00:02:24,600 Speaker 1: you get into the property market sooner, but it also 40 00:02:24,720 --> 00:02:28,160 Speaker 1: means you're not the sole owner of your home, so 41 00:02:28,280 --> 00:02:31,720 Speaker 1: that of course does have long term implications. Now, it's 42 00:02:31,760 --> 00:02:34,720 Speaker 1: important that you're aware of who is this particular product 43 00:02:34,760 --> 00:02:37,359 Speaker 1: from Hope Housing is form. As I mentioned, it's designed 44 00:02:37,400 --> 00:02:43,119 Speaker 1: for essentral workers. So essential workers are teachers, early childhood educators, nurses, 45 00:02:43,840 --> 00:02:48,040 Speaker 1: HK workers, paramedics, police and first responders, and that of 46 00:02:48,040 --> 00:02:54,040 Speaker 1: course disability support workers, public transport and infrastructure employees. If 47 00:02:54,080 --> 00:02:57,720 Speaker 1: you work in one of these sectors and your income 48 00:02:57,840 --> 00:03:02,280 Speaker 1: falls within a certain bracket, you may actually qualify to 49 00:03:02,320 --> 00:03:04,720 Speaker 1: be able to apply. And the goal is to help 50 00:03:04,760 --> 00:03:08,399 Speaker 1: these workers live closer to where they actually work, especially 51 00:03:08,400 --> 00:03:12,440 Speaker 1: in high demand metro areas. Now, the key features and 52 00:03:12,520 --> 00:03:14,920 Speaker 1: the catches are the really important that you're aware of. 53 00:03:15,160 --> 00:03:19,679 Speaker 1: So shared equity schemes like Hope Housing do sound incredible 54 00:03:19,720 --> 00:03:22,120 Speaker 1: and this is why this bit dm to me asking 55 00:03:22,200 --> 00:03:24,919 Speaker 1: for my thoughts and opinions. So here are the most 56 00:03:24,919 --> 00:03:28,200 Speaker 1: important things that I think you need to understand before 57 00:03:28,240 --> 00:03:30,440 Speaker 1: you say yes. And of course I'm just covering on 58 00:03:30,639 --> 00:03:32,800 Speaker 1: the surface level stuff here. You do need to read 59 00:03:33,000 --> 00:03:35,920 Speaker 1: the fine print and obviously get personal advice, but let's 60 00:03:36,120 --> 00:03:38,000 Speaker 1: make sure that you are up to speed with the 61 00:03:38,040 --> 00:03:41,040 Speaker 1: important stuff that I can see as essential. So the 62 00:03:41,080 --> 00:03:43,560 Speaker 1: first thing is is you carry one hundred percent of 63 00:03:43,600 --> 00:03:48,000 Speaker 1: the ongoing costs even though Hope Housing owns part of 64 00:03:48,040 --> 00:03:50,920 Speaker 1: your home. You have to pay for everything, So the 65 00:03:51,000 --> 00:03:56,680 Speaker 1: council rates strata levees insurance like home and contents insurance, maintenance, 66 00:03:57,040 --> 00:04:00,840 Speaker 1: wear and tear repairs, even renovation. You want to put 67 00:04:00,840 --> 00:04:03,920 Speaker 1: a new wardrobe in, put a new kitchen in, do 68 00:04:04,040 --> 00:04:06,600 Speaker 1: a new bathroom. That you're covering that cost and neither 69 00:04:06,640 --> 00:04:08,920 Speaker 1: it adds value to it. They're going to clip their 70 00:04:08,960 --> 00:04:11,840 Speaker 1: ticket with that, even though they've contributed nothing. Also, if 71 00:04:11,840 --> 00:04:14,520 Speaker 1: something happens to the property, like the roof starts leaking, 72 00:04:14,760 --> 00:04:17,080 Speaker 1: you're going to have to pay that cost. So when 73 00:04:17,120 --> 00:04:19,840 Speaker 1: the property increases in value, which quite often does when 74 00:04:19,880 --> 00:04:21,520 Speaker 1: you do things you know and you do things in 75 00:04:21,560 --> 00:04:24,520 Speaker 1: a clever way to increase the value. Because you're obviously 76 00:04:24,680 --> 00:04:27,440 Speaker 1: improve that property, Hope Housing is going to get a 77 00:04:27,520 --> 00:04:31,320 Speaker 1: cut of that. You don't get reimbursed for your contributions, 78 00:04:31,640 --> 00:04:35,480 Speaker 1: so they are pocketing off your hard work and the 79 00:04:35,520 --> 00:04:38,279 Speaker 1: expenses that you have funded purely on your own. You 80 00:04:38,320 --> 00:04:40,200 Speaker 1: need to be comfortable with that. The second thing you 81 00:04:40,240 --> 00:04:42,280 Speaker 1: need to be aware of is you don't have full 82 00:04:42,320 --> 00:04:46,839 Speaker 1: control over your property. Because this is a shared ownership, 83 00:04:46,880 --> 00:04:49,960 Speaker 1: there may be restrictions on what you can actually do 84 00:04:50,360 --> 00:04:55,160 Speaker 1: like refinancing or renting it out, or even making like 85 00:04:55,320 --> 00:04:57,280 Speaker 1: major changes to the property. You're going to need to 86 00:04:57,279 --> 00:05:01,919 Speaker 1: get approval in some situations, which it can be really limiting. 87 00:05:02,120 --> 00:05:05,120 Speaker 1: This isn't a traditional home ownership where you have complete 88 00:05:05,200 --> 00:05:07,680 Speaker 1: control and you can decide what, how and when you 89 00:05:07,760 --> 00:05:10,080 Speaker 1: go and do this. And the next thing is obviously 90 00:05:10,200 --> 00:05:12,440 Speaker 1: the capital gains are shared. So even when you've done 91 00:05:12,440 --> 00:05:14,560 Speaker 1: that work and you renovate and you improve, and you 92 00:05:14,600 --> 00:05:18,120 Speaker 1: simply maintain the property over the years and that value increases, 93 00:05:18,160 --> 00:05:20,840 Speaker 1: even if you do literally nothing but just live in it. 94 00:05:20,960 --> 00:05:24,960 Speaker 1: When you sell, Hope Housing still receives their greed share 95 00:05:25,240 --> 00:05:29,640 Speaker 1: of the total sale price. Now that can feel really 96 00:05:29,680 --> 00:05:33,640 Speaker 1: frustrating if you've put so much time, love, care, and 97 00:05:33,800 --> 00:05:37,080 Speaker 1: energy and of course money into your home. But again 98 00:05:37,200 --> 00:05:39,719 Speaker 1: it's good to know about this upfront before you say yes. 99 00:05:39,880 --> 00:05:41,359 Speaker 1: The other thing you need to be aware of is 100 00:05:41,560 --> 00:05:43,400 Speaker 1: you're still going to need a deposit, and you still 101 00:05:43,440 --> 00:05:46,839 Speaker 1: even may need a big deposit, So Hope Housing isn't 102 00:05:46,920 --> 00:05:50,719 Speaker 1: a no deposit scheme. Depending on the lender and the 103 00:05:50,800 --> 00:05:53,799 Speaker 1: size of the contribution, you may still need to provide 104 00:05:53,800 --> 00:05:56,679 Speaker 1: it a genuine deposit, and of course, like cover those 105 00:05:56,760 --> 00:06:00,240 Speaker 1: stamp duty expenses and legal costs, which is it's not 106 00:06:00,279 --> 00:06:03,760 Speaker 1: always accessible as some people assume. And then the other 107 00:06:03,800 --> 00:06:06,040 Speaker 1: thing you need to remember is Hope Housing is not 108 00:06:06,279 --> 00:06:10,599 Speaker 1: the same as the government's shared equity scheme. This is key. 109 00:06:10,760 --> 00:06:14,159 Speaker 1: So there's a federal shared equity scheme run by the 110 00:06:14,279 --> 00:06:18,760 Speaker 1: National Housing Financed and Investment Corporation that allows eligible buyers 111 00:06:18,800 --> 00:06:23,240 Speaker 1: to co purchase with the government, typically with no capital 112 00:06:23,320 --> 00:06:26,000 Speaker 1: gain sharing, so just for paying the equity the loan 113 00:06:26,040 --> 00:06:30,000 Speaker 1: that they provided. Hope Housing, by contrast, is a private, 114 00:06:30,120 --> 00:06:33,120 Speaker 1: non for profit that shares in that growth, which I've 115 00:06:33,160 --> 00:06:38,159 Speaker 1: explained throughout this episode. It's not regulated in the same way, which, 116 00:06:38,520 --> 00:06:40,480 Speaker 1: going to be honest, makes me a little bit worried, 117 00:06:40,680 --> 00:06:44,520 Speaker 1: and the terms and conditions could change. So you need 118 00:06:44,600 --> 00:06:48,200 Speaker 1: to be crystal clear on exactly who you're partnering with 119 00:06:48,520 --> 00:06:52,120 Speaker 1: and what your rights are and what their rights are, 120 00:06:52,400 --> 00:06:55,160 Speaker 1: and of course any sort of legal repercussions if they 121 00:06:55,240 --> 00:06:58,000 Speaker 1: breach it or you breach it. And then the next 122 00:06:58,040 --> 00:06:59,839 Speaker 1: thing to think about it and be aware and understand 123 00:06:59,920 --> 00:07:03,200 Speaker 1: is your future borrowing capacity could be impacted. Now I 124 00:07:03,200 --> 00:07:05,680 Speaker 1: feel like people forget about this or they may not 125 00:07:05,800 --> 00:07:08,360 Speaker 1: mention this but it's really important, particularly if you want 126 00:07:08,400 --> 00:07:10,600 Speaker 1: to look at once you've bought a home, maybe looking 127 00:07:10,640 --> 00:07:13,360 Speaker 1: at debt recycling where you use the equity within your 128 00:07:13,360 --> 00:07:15,360 Speaker 1: home to go and invest or you want to take out, 129 00:07:15,400 --> 00:07:17,040 Speaker 1: say a margin loan, or you want to go and 130 00:07:17,040 --> 00:07:20,880 Speaker 1: buy an investment property. Because this property is technically on 131 00:07:20,920 --> 00:07:24,280 Speaker 1: your record, it still appears in your credit file and 132 00:07:24,320 --> 00:07:26,680 Speaker 1: your asset base. So if you're going to go and 133 00:07:26,760 --> 00:07:32,040 Speaker 1: think about maybe investing later and maybe applying for another loan, 134 00:07:32,320 --> 00:07:35,640 Speaker 1: this could actually reduce your borrowing power. You know, the 135 00:07:35,680 --> 00:07:38,680 Speaker 1: banks may not like lending money to you on something 136 00:07:38,760 --> 00:07:42,720 Speaker 1: that you don't own entirely yourself, so it could actually 137 00:07:43,000 --> 00:07:46,280 Speaker 1: hold you back and be a hindrance. Now I'm going 138 00:07:46,320 --> 00:07:49,320 Speaker 1: to put up a quick post on Instagram to show 139 00:07:49,360 --> 00:07:52,240 Speaker 1: you the difference between the government scheme and of course 140 00:07:52,600 --> 00:07:55,000 Speaker 1: Hope Housing, so that you have a really clear indication 141 00:07:55,160 --> 00:07:57,880 Speaker 1: as to how they are different and you can help 142 00:07:57,920 --> 00:08:00,360 Speaker 1: work out if they're right for you which and of 143 00:08:00,360 --> 00:08:02,040 Speaker 1: course if neither of them are right for you. On 144 00:08:02,160 --> 00:08:04,280 Speaker 1: that topic of is it right for you, I would 145 00:08:04,360 --> 00:08:07,360 Speaker 1: say that Hope Housing is there to help people buy 146 00:08:07,680 --> 00:08:10,240 Speaker 1: sooner so that they can stay in their community and 147 00:08:10,280 --> 00:08:12,920 Speaker 1: stay close to work and to help reduce that initial 148 00:08:12,960 --> 00:08:16,440 Speaker 1: loan size. But make no mistake, this is definitely not 149 00:08:16,560 --> 00:08:20,040 Speaker 1: free money and it's not full control of the home. 150 00:08:20,200 --> 00:08:23,880 Speaker 1: So before saying yes, I would highly recommend asking yourself, 151 00:08:24,000 --> 00:08:29,120 Speaker 1: am I okay with sharing my home ownership and still 152 00:08:29,160 --> 00:08:32,600 Speaker 1: at the same time carrying all of that financial responsibility? 153 00:08:32,679 --> 00:08:35,560 Speaker 1: And am I happy with this decision now? And I'm 154 00:08:35,600 --> 00:08:37,800 Speaker 1: going to be still happy with this decision in three 155 00:08:37,840 --> 00:08:40,560 Speaker 1: years time, five years time, in fifteen years time. This 156 00:08:40,640 --> 00:08:42,600 Speaker 1: is a big decision. It doesn't need to just meet 157 00:08:42,600 --> 00:08:45,000 Speaker 1: your immediate needs and goals now, it also needs to 158 00:08:45,000 --> 00:08:48,480 Speaker 1: meet your long term financial goals and needs and dreams. 159 00:08:48,640 --> 00:08:51,040 Speaker 1: And of course I'd ask myself like, could I achieve 160 00:08:51,120 --> 00:08:55,319 Speaker 1: something else with something similar, such as rent investing, or 161 00:08:55,440 --> 00:08:58,640 Speaker 1: maybe moving into a slightly different area that's perhaps more affordable, 162 00:08:58,880 --> 00:09:02,120 Speaker 1: or even using the government scheme. So I really hope 163 00:09:02,120 --> 00:09:05,559 Speaker 1: that this episode has helped make you aware of hope housing, 164 00:09:05,760 --> 00:09:09,280 Speaker 1: that it exists, that it's potentially an option, but more importantly, 165 00:09:09,440 --> 00:09:13,120 Speaker 1: the finer details of how this may help or it 166 00:09:13,200 --> 00:09:16,439 Speaker 1: may not help you with your financial journey. I would 167 00:09:16,440 --> 00:09:19,360 Speaker 1: lovelso like to take this moment to actually welcome any 168 00:09:19,400 --> 00:09:23,240 Speaker 1: other particular questions from you as a listener that you 169 00:09:23,280 --> 00:09:27,080 Speaker 1: would like me to break down, dissect, explore, and help 170 00:09:27,160 --> 00:09:31,720 Speaker 1: give you some great insight into particular financial topics, products, 171 00:09:31,840 --> 00:09:34,520 Speaker 1: or even strategies that you are wondering whether it could 172 00:09:34,559 --> 00:09:37,600 Speaker 1: be right. Forew of course never personal advice or investment 173 00:09:37,720 --> 00:09:40,720 Speaker 1: advice or strategic advice, but to help, I guess, make 174 00:09:40,760 --> 00:09:44,040 Speaker 1: things clearer for you to understand and to then use 175 00:09:44,120 --> 00:09:47,719 Speaker 1: and build upon your own research and form your own opinions. 176 00:09:47,920 --> 00:09:50,280 Speaker 1: So if you have something you'd like me to go 177 00:09:50,360 --> 00:09:53,000 Speaker 1: through with you and all the other listeners, simply send 178 00:09:53,040 --> 00:09:56,319 Speaker 1: me a message on Instagram at Sugar Mama TV or 179 00:09:56,400 --> 00:10:00,120 Speaker 1: Canna Campbell Official. Because I have really enjoyed diving in 180 00:10:00,120 --> 00:10:03,880 Speaker 1: to these sometimes complex topics and helping give you that 181 00:10:04,040 --> 00:10:07,400 Speaker 1: confidence in your own financial decisions. So that is it 182 00:10:07,440 --> 00:10:09,640 Speaker 1: for today. I really hope you've enjoyed this. If you 183 00:10:09,640 --> 00:10:12,040 Speaker 1: could take a moment to leave me a rating and review, 184 00:10:12,080 --> 00:10:15,439 Speaker 1: I would greatly appreciate it, and of course send this 185 00:10:15,520 --> 00:10:18,000 Speaker 1: to anyone you think that would benefit from listening to 186 00:10:18,080 --> 00:10:20,880 Speaker 1: this episode or any of my other episodes. And I 187 00:10:20,920 --> 00:10:23,840 Speaker 1: want you to remember, owning a home is a dream 188 00:10:24,040 --> 00:10:26,120 Speaker 1: but you've got to make sure that you do it 189 00:10:26,200 --> 00:10:30,280 Speaker 1: on your own terms, with your eyes wide open, those 190 00:10:30,520 --> 00:10:33,880 Speaker 1: rose tinted glasses off, and doing so in a place 191 00:10:34,000 --> 00:10:37,520 Speaker 1: of true financial empowerment. Al Right, everyone, thank you so 192 00:10:37,600 --> 00:10:39,480 Speaker 1: much for listening. Please make sure you send this as 193 00:10:39,600 --> 00:10:42,920 Speaker 1: episode to a friend or anyone else who is considering 194 00:10:43,280 --> 00:10:46,679 Speaker 1: a shared equity model, and in the meantime, keep that 195 00:10:46,720 --> 00:10:51,400 Speaker 1: financial fire burning bright within. This is sugar Mamma's firefl