The Australian Government promotes home ownership in its latest federal budget. In an attempt to reducing pressure on housing affordability, first home buyers have a great opportunity to take advantage of a number of government grants.
There three (3) measures to make it easier for Australians to enter the market.
1. The Family Home Guarantee – An incentive aimed at single parents with dependants. The government will guarantee 10,000 loans over the next four years, so eligible single parents can buy a property with a deposit of just 2%. The Family Home Guarantee is open to both first home buyers and previous owner-occupiers. This applies regardless of whether that single parent is a first home buyer or previous owner-occupier. There is a criteria to adhere to, with applicants being at least 18 years, an Australian citizen and earning less than $125,000 (annual taxable income).
2. The First Home Loan Deposit Scheme is providing an additional 10,000 places in 2021-22. The First Home Loan Deposit Scheme is aimed to support eligible first home buyers to build or purchase a first home sooner. First home buyers who want to build or buy a new home will be able to do so with just a 5% deposit. There are twenty seven (27) participating lenders who are part of this opportunity.
3. The First Home Super Saver Scheme was previously announced in the Federal Budget 2017-18 aimed to make it easier for people to save for their first home, by increasing the amount of voluntary contributions that can be released under the First home super saver scheme. In the latest federal Budget, the government has increased the amount from $30,000 to $50,000.
Buying direct property is an excellent way to enhance your financial future. Like any investment, there are advantages and disadvantages to review in advance, while having a clear understanding of what government grants are available and if you are eligible. Having eligibility to take advantage of these above schemes is great news, but be mindful of what you can still physically afford. Take note of your borrowing capacity, loan repayments and the property outgoings costs.
At Crest Property Investments we specialise in helping buyers purchase brand new or off the plan property. Our tailored advice supports buyers from start to finish. Please feel free to contact us if you’d like to learn more about buying off the plan property. We welcome the opportunity to help you start your property journey.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
June 2021
