For every Barnett apartment created and sold to a tenant of social housing three social benefits are created:
Barnett invests in people providing innovative finance solutions to enable them to purchase their own home thus vacating their social housing dwelling for occupation by those on the waiting list for social housing.
The three social benefits
Barnett’s Social Impact
The Purchaser achieves something that was an impossible dream – home ownership. Barnett is aware of tenants of social housing who are now striving to be able to qualify for future Barnett projects.
Person or family experiencing homelessness
The person or family experiencing homelessness on the Victorian Housing Register who moves into the social housing dwelling vacated by the Purchaser; and
Individuals and families
Individuals and families who benefit from the additional interim (crisis and transitional) accommodation that is created by Barnett.
Melbourne Apartments Project
Testimonial – Khoa
Khoa has accelerated his journey to home ownership after 30 years in social housing.
Research undertaken by the University of Melbourne on the value and extent of this social impact is available here.
In addition, where the cost of producing Barnett apartments is provided by the purchasers, the model requires no Government support making it a financially independent, scalable and sustainable model.
People before profit
Shared equity to alleviate homelessness
Barnett recognises that to be a repeat investor in social impact projects it must generate value in order to maintain that investment.
It generates this value through its property development activities which, instead of distributing this value to shareholders, Barnett reinvests this profit in people, providing tenants of social housing with innovative financial solutions to enable them to purchase their own home thus vacating their social housing dwelling for occupation by those on the waiting list for social housing.
When the value created by Barnett is realized, Barnett invests the funds into additional affordable residential projects and the development of interim accommodation for disadvantaged youth, survivors of domestic violence and other families in housing stress.
Example of Shared Equity Model
Barnett develops residential apartments for sale to tenants of social housing creating value which is used to underpin a shared equity model.
For example, Barnett develops a two bedroom apartment with a market value of
But a cost of
Creating a total added value of
Therefore Barnett is able to provide the apartment to a tenant of social housing, the purchaser, for:
- $450,000 cash (to cover the cost of the development) which the purchaser, often together with family members, raises via savings and a bank loan; plus
- an obligation that the purchaser will donate the unpaid balance of $650,000 market value, the $200,000, when the apartment is sold by the purchaser (the Obligation). This Obligation is secured on title and is completed when the apartment is sold.
Hence the purchaser is able to move into their own home enjoying the amenity of a brand new apartment in their locality whilst only being required to fund less than 70% of the market value of that apartment.
Developing Interim (Crisis & Transitional) Accommodation
Barnett intends to create additional interim (crisis or transitional) accommodation either by development of new purpose built assets or the purchase and refurbishment of existing properties.
It is undertaking this activity in areas identified as having a high demand for these facilities including Frankston, Rosebud and Wyndham.
Barnett intends to partner with selected specialist organisations to operate these facilities.
Enhancing Financial Literacy
The Barnett Foundation will provide financial literacy education specifically designed for residents of social housing. Through this interaction, tenants are aided on the path to financial independence that ultimately leads them to home ownership.
Barnett is tackling the unacceptable level of homelessness in this, the lucky country.
We are always ready to welcome land owners, financial supporters and service providers wishing to join us on this very necessary journey.