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For would-be buyers without the privilege of a “bank of mum and dad”, LongView’s latest venture could offer a much-needed boost.
It’s no surprise to Australia’s first home buyers that the cost of saving a deposit is steeper than ever before.
As savings capacity plummets and rental rates spike, those lucky enough to have wealthy parents increasingly turning to the so-called “bank of mum and dad” – but what about the many other Australians who are left in the lurch?
Proptech business LongView’s
“In the absence of ‘the bank of mum and dad,’ being able to buy a home you love is a pipe dream for most Australians in the current housing market,” said LongView executive chair Evan Thornley.
The situation is particularly dire for single parents, migrant couples or families, recent divorcees and young people without the privilege of financial support from family.
LongView’s new shared equity platform, Buying Boost, claims to offer a solution to these would-be home owners.
Buyers in Sydney, Melbourne and Brisbane who have saved at least $100,000 for a deposit are eligible for a “boost” of up to 50 per cent of the saved amount. In exchange for the initial contribution, LongView
“With Buying Boost, home buyers don’t have to worry about paying monthly interest or extra fees,” said Thornley. “We only make money if they make more money – by sharing in the profit and appreciation together.”
For clients Supratik and Anindita Choudhury, one of the benefits of the platform was the opportunity it provided to escape Australia’s brutal rental market.
“We would still be renting if not for LongView,” they stated. “We’ve never been financially assisted by family; everything we’ve done is from the ground up.”
The sentiment was reiterated by first home buyer Emily Hobbs, who stressed that “shared equity platforms like Buying Boost are the key to owning a home that buyers will love despite a potential lack of access to the financial support needed”.
LongView’s Buying Boost comes in the wake of a rise in shared equity schemes across Australia, including the federal government’s upcoming Help to Buy scheme and the NSW government’s Shared Equity scheme.
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