Hoping for a miracle: The group of Australians doing it tougher than first-home buyers

Kaitlyn Plyley, 30, has myalgic encephalomyelitis and is a part-time wheelchair user. She’s also a renter, and doesn’t believe she’ll ever be able to buy a home – despite wanting a dog and a place to call her own.

“I’ve done the math and if you spend more than 30 per cent of your income on rent then you’re in housing stress. I’ve been in it forever,” Ms Plyley said.

On a disability support pension, and renting with a friend through the National Disability Insurance Scheme at 80 per cent of the market rate in inner Melbourne, she said every month is a struggle to get by – let alone to save a deposit.

“Right after I became disabled in 2009 there were four years where every six months I had to move,” she said. 

“With what I am getting at the moment it would take longer than my lifetime to save a deposit.”

​”I’m hoping for miracles and it really shouldn’t be that way,” she said. 

While the housing debate has become increasingly focused on young first-home buyers it’s Ms Plyley, and the one in five people in Australia with a disability, who are even less likely to get into the property market.

Those with a disability are far less likely than the average resident to own a home.

Government records indicate 13 per cent of those with a disability under the age of 65 own their home or have a mortgage, compared to close to 70 per cent of all Australians and 30 per cent of Australians aged 25 to 34.

But “shared home ownership” models could be a way to bridge the gap between renting and home ownership for those with a disability, a new report by researchers from the Social Policy Research Centre and UNSW for Australian Housing and Urban Research Institute show.

Shared home ownership is where the person who lives in the home buys a part ownership in the property, usually with a government organisation owning the rest of the property. This allows them to buy their home for a smaller amount. 

There are many different models, but they often involve the buyer paying a moderate rent to the government or slowly buying out the other share over time. The report said there was “high demand” for this type of scheme.

But introducing shared ownership schemes wouldn’t be a silver bullet solution.

This would work well for some people in some areas, but would be ineffective for some who would continue to need other housing assistance, UNSW Social Policy Research Centre professor and co-author of the report Karen Fisher said.

“Independent advocacy and financial planning for the people and families involved are critical for the success of shared ownership, as people with disability may be encouraged or even pressured to invest significant personal or family assets in such schemes, which may not be their optimal financial investment,” she said.

Large declines in house prices could cause low-income households on shared ownership schemes to risk “becoming trapped with insufficient equity to move elsewhere” if they needed to move for employment or education. They would also need to pay for the property’s maintenance.

But without assistance, many would be left facing an increasingly expensive rental market. 

Anglicare’s 2016 Rental Affordability snapshot found 0.5 per cent of rentals advertised on a weekend in April 2016 were affordable for singles on a Disability Support Pension. And in capital cities, this fell to 0.1 per cent of properties – five of 57,307 homes analysed nationally.

Anglicare Australia executive director Kasy Chambers said shared ownership could make a difference on the quality of life for people with a disability.

“The shared ownership of well-designed homes can work for some people living with disability, and community support to assist those wishing to pursue such arrangements would be welcome,” Ms Chambers said.

“However, the key issue here is that right across Australia there is a critical shortage in housing that is suitable for people living with disability, both for rent and for purchase. Congregate living will work for some but not everyone.”

A shared ownership scheme is already in place for first-home buyers and those with disabilities in Western Australia called Keystart. The report recommended establishing similar schemes in other states and territories.

But shared ownership isn’t seen as a solution by everyone.

Ms Plyley, who runs a podcast interviewing other people with chronic illnesses and disabilities, said the housing issue is widespread and wouldn’t be solved by this “Band Aid” measure. 

Instead, she wanted the government to tackle high property prices and speculative investment and to consider higher accessibility standards for new developments.