Tom Elliott says the latest government initiative has “stuff-up written all over it”

Tom Elliott says HomesVic has “stuff-up written all over it”.

The latest government initiative, HomesVic aims to help young people enter the property market.

Tom said the objective is “laudable” but it could go very, very wrong.

“I’ve got serious concerns about it,” Tom said.

“If you’re unable to save up a meaningful deposit on your own, chances are you won’t be able to afford the subsequent home loan.”

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But the Real Estate Institute of Victoria supports the initiative.

President Richard Simpson told Tom anything that helps people into the market is a good thing.

“This type of scheme has been trialled in other jurisdictions… and it’s been very successful,” Mr Simpson said.

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The Government launched HomesVic on Monday.

The scheme allows first-home buyers earning $75,000 or less to get assistance buying in rural or regional Victoria, or certain outer metropolitan suburbs.

Successful applicants will only have to pay five per cent of the deposit. The Government will also pay for up to 25% of the house price, and subsequently own an equivalent share of the property.