How can first home buyers utilise the current government incentives? First home buyers can take advantage of various government incentives that help make homeownership more affordable. These incentives vary by country and region, so it’s essential to research what’s available in your area. Here’s how first-home buyers can utilize current government incentives:
1. First-Home Buyer Grants
- What It Is: Many governments offer grants to help first-time buyers cover some of the costs associated with purchasing a home. These grants are often a lump sum that doesn’t need to be repaid.
- How to Use It: Research your eligibility and apply through your local government or housing authority. Ensure you meet the criteria, such as purchasing a new or existing home below a certain price cap.
2. Stamp Duty Exemptions or Concessions
- What It Is: Some governments offer full or partial exemptions from stamp duty (a tax on property purchases) for first-home buyers. This can save you a significant amount of money.
- How to Use It: Check your eligibility for stamp duty concessions in your region. These benefits often apply to properties under a specific price threshold or for first-home buyers purchasing new homes.
3. First-Home Super Saver Scheme (FHSSS)
- What It Is: In countries like Australia, the First Home Super Saver Scheme allows first-home buyers to withdraw voluntary superannuation contributions to use as a deposit for their first home.
- How to Use It: Contribute to your superannuation account voluntarily and then apply to release these funds when you’re ready to buy. This can help you save for a deposit more efficiently thanks to the tax advantages of superannuation accounts.
4. Shared Equity Schemes
- What It Is: Shared equity schemes allow buyers to purchase a home with the help of the government or another entity, which retains a share of the property. This reduces the amount you need to borrow and lowers your monthly repayments.
- How to Use It: Look for government or non-profit programs offering shared equity arrangements. These schemes often have eligibility criteria based on your income and the value of the property.
5. First-Home Loan Deposit Scheme (FHLDS)
- What It Is: This scheme, available in some regions, allows first-home buyers to purchase a property with a lower deposit (e.g., 5%) without paying for Lenders Mortgage Insurance (LMI). The government guarantees the loan.
- How to Use It: Apply for the scheme through participating lenders. Ensure you meet the criteria, which typically include property price limits and income thresholds.
6. Home Buyer Education Programs
- What It Is: Many governments offer education programs that provide financial literacy training, home buying workshops, and access to financial counseling. Completing these programs may qualify you for additional incentives.
- How to Use It: Sign up for relevant programs in your area to gain knowledge and unlock further benefits.
By researching and applying for these government incentives, first-home buyers can reduce the financial burden of buying a home and make homeownership more attainable. Please take note of your goals, objectives and risk tolerance. The government schemes offered need to be carefully understood as their are advantages and disadvantages to implementing them. Please make sure you seek advice before proceeding.
Want to learn more?
You can also learn more tips around property investment on our YouTube channel or Market Insights section on the website. Before buying a property, we recommend seeking professional property advice.
At Crest Property Investments we specialise in sourcing brand new and off the plan properties for buyers. We also do not charge fees to buyers!
If you’d like to learn more, please feel free to contact us. We welcome the opportunity to help you make the best property decision.
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.
August 2024
