A new Home Ownership Trust recently launched is offering interest free loans for first home buyers.
Wednesday, June 18th 2008, 11:22AM
by The Landlord
The Trust’s founder and CEO of First Home Trustee Limited, Spence Reichardt says, “This is a new initiative set up especially to provide the ‘leg up’ so desperately needed by first home buyers.”
The Trust’s vision is: “Healthy families through stress free first home ownership”.
Reichardt believes, “getting young families into newer, dryer, warmer and healthier homes will have significant health and relationship benefits for those families.”
The Trust deed was signed on 19 May 2008 and an application has been made for charitable status with the Charities Commission, says Reichardt.
The Trust will remain sustainable through a tailored loans repayment system. When borrowers reach the point where they can cope with a commercial loan, the loan from the Trust will become fully repayable and the money will then be available to lend to the next family.
To achieve this vision, the Trust is setting up an establishment Trust fund exceeding $5 million in the first year, rising to over $20 million over the next four years from public donations.
Alongside this, the Trust will be seeking to partner with major businesses in the building industry.
During the establishment phase, the Trust will be able to confirm the true demand for first home purchase and will work towards establishing the suitably sized capital fund.
