Rental Housing

KEY POINTS

First Home Owners' Grant designed to help people purchase or build their first home GoodStart enables tenants to buy a share in their rental home Rental Sales Scheme for tenants who are eligible to purchase their current rental property.

First Home Owners' Grant

The First Home Owners' Scheme provides for a grant designed to help people purchase or build their first home. It is not a loan and does not need to be repaid. The grant compensates for price increases associated with the Goods and Services Tax (GST) introduced on 1 July 2000. All the States and Territories provide the grant under uniform arrangements agreed with the Federal Government

This loan can help tenants and applicants on the rental waiting list to buy a minimum 70 per cent share in a Department of Housing and Works property. The remaining share is owned by the Department and can be purchased by the borrower at a later date.

For more information, see the GoodStart page under Keystart.

The Rental Sales Scheme is open to eligible tenants who are interested in purchasing their rental property.

Benefits offered to purchasers

• Purchasers will receive a grant of up to $3000 for stamp duty, valuation and settlement fees.

Should these cost less than $3000, they will be fully paid for by the Department of Housing and Works and if they are more the purchaser will only pay the amount over $3000.

• Purchasers will receive a discount for any approved capital improvements they have made to the property.

Eligibility

To be eligible for the scheme you must have:

• A minimum period of three years continuous tenancy with the Department.
• No interest in any lot of residential land (improved or unimproved).
• Sufficient income to repay the home loan.
• No current arrears or other debts to the Department of Housing and Works (including water consumption debts) at the time of application and settlement.

Available properties

• The Department of Housing and Works will approve the sale of a property, providing it is available for sale.

• TRANSFER/PURCHASE OPTION - If current property is unavailable you may be offered another property providing one is available and you have chosen the transfer/purchase option in your application.

• A property will only be sold if it has its own title at the time of application.

• Normally the property must be more than seven years old or have been purchased by the Department of Housing and Works more than seven years ago.

How you Purchase a Property:

If you are interested in purchasing your rental property, please complete and return to the following address your application (see PDF below) plus your deposit of $150 made payable to the Department of Housing and Works:

RENTAL SALES SCHEME
DEPARTMENT OF HOUSING AND WORKS
BAG 22, EAST PERTH WA 6892

Once your application is received the Department of Housing and Works will decide whether the property is available for sale.

If the property is unavailable for sale you will be advised accordingly and your deposit will be returned to you. Please note that the Department's decision is final and there is no appeal process.

If the property is unavailable for sale and you have not chosen the transfer/purchase option, your application will be withdrawn and your deposit will be returned to you. Please note that the Department's decision in this matter is final and that there is no appeal process.

If you have chosen the transfer/purchase option, the Department of Housing and Works will endeavour to find another property for you in your price range within the areas selected in your Region. This process may take up to three months. If another property is available you will be advised accordingly. If no other property is available within three months, your application will be withdrawn and your deposit will be returned to you.

When a property is available for sale, its market value will be determined. Any capital improvements you have made that have increased the market value by up to $5,000, such as an extension, a kitchen renovation or the addition of a patio or carport will be counted. Landscaping, painting and other maintenance items etc are not included. The purchase price will be the market value less the amount allowed for improvements.

The Department of Housing and Works will then make you a written offer and you will be given 30 days to accept the offer and arrange the preliminary finance approval for your loan.

Once your acceptance letter and the preliminary finance approval have been received, you will be sent the Contract of Sale for signing. On its return, settlement of the sale will follow.

Please note that should you not accept the Department's offer and wish to withdraw your application, your deposit of $150 is non-refundable and will be retained by the Department. The reason for this is to assist in defraying the costs incurred by the Department for the valuation fees.

The Rental Sales enquires number is - 9222 8148. Country callers can phone TOLL FREE number -1800 093 325 and ask for Rental Sales.

Open a PDF copy of the Rental Sales Scheme (172 kB) for the Application Form . More information on PDF documents.

Obtaining a Home Loan

To finance the purchase of your home you may approach a bank, building society, credit union or the Keystart Home loan Scheme (Phone Keystart on 1800 199 050). They will assess whether your income is high enough to meet the loan repayments. The size of any other financial commitments you may have (for example, a car loan) will also affect their decision.

Open a PDF copy of the Keystart Home Ownership Options pamphlet (260 kB). More information on PDF documents.

Other relevant information

INTERPRETER SERVICE

A telephone interpreter service is available to non-English speaking customers.

LIFE OF SCHEME

The Department of Housing and Works reserves the right to withdraw the Rental Sales Scheme at any time without notice.

TRANSFER OF LAND

Transfer of land can be to a single owner or multiple opwners as either joint tenants in common or a combination of both of these where there are mnore than two owners.

JOINT TENANTS

On the death of a joint tenant, the survivor(s) become(s) the registered proprietor(s) of the deceased's interest by applying to the Registrar of Titles.

TENANTS IN COMMON

On the death of a tenant in common, their share is dealt with according to their will.

SETTLEMENT AGENCY

If private settlement agency is not being used, the Securities Branch of the Department of Housing and Works is prepared to act as settlement agent for the purchaser as well as its own interest.

Click here for Home Purchase Frequently Asked Questions.