Under an innovative shared equity test, $100,000 is likely to be slashed from seniors housing in WA.
Construction has begun on the Cherry Glades estate at Manjimup (pictured), WA 307km south of the state’s capital Perth.
With a relatively small population of just over 4500 the development will eventually include 50-60 two- and three-bedroom homes, which is a lot of homes for such a small town.
Under the WA Government scheme, eligible low-income seniors will be able to purchase a minimum 65% equity share of a home in the estate.
The Department of Communities will retain the remaining equity 35% share as a silent partner.
The shared equity initiative will be accessible to those over the age of 65 with incomes under $49,900 per annum and with less than $332,000 in total net assets for singles or $412,000 for couples.
In addition, the scheme is targeted to seniors with a superannuation lump sum payment or equity in a current home who do not require a loan to purchase the minimum 65% share in the new home.
The government’s 35% equity share effectively brings down the price of 2-bedroom homes from $250,000 to $162,500 and 3-bedroom homes from $289,000 to $187,500.
The WA Government says that, if the scheme is successful, it may be replicated in other developments across the State.
Housing minister Peter Tinley says, “Cherry Glades is designed to allow Manjimup seniors to age in place in their community by providing affordable, age-friendly housing options close to services and amenity,” Manjimup’s claim to fame is its production of black truffles, with beef farming and tourism also major employers.
Unemployment rates for Mamjimup are on par for the state at around 5.4%
