What is a shared equity sponsor?
When you buy a home with HAS shared equity, you need a sponsor to invest in the residential property trust.
Anyone, or any entity, can be a sponsor. This includes family (one or multiple members), friends, churches, and community organisations. You can also sponsor yourself.
If parents invest, they don’t have to give a parental guarantee on the nominated property. They invest in the property trust, receiving a regular return on their investment.
Sponsors obtain a return on all the properties in the trust.
An SMSF can choose to invest in the property trust, as part of a diversified investment strategy. An SMSF will need to obtain financial advice to make an investment.