*First Home Buyers can get up to $70,000 in savings

*Subsequent Home Owners can get $25,000

The State and Federal Governments are handing out money and savings to Home Buyers in 5 Different Funded Schemes

Home Builder

Home Builder provides eligible first and subsequent owner occupiers with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off the plan home/new home. A new home is one that has not previously been sold or occupied as a place of residence, (e.g. spec build) and where construction commenced on or after 4 June 2020. There are some other conditions, but you can find out more about this scheme here.

First Home Buyer Specific Schemes

Now really is the time for first time home buyers to think about getting on the property ladder.

First Home Buyer Assistance scheme – Now Increased for a limited time

As part of the COVID recovery plan, State Premier Gladys Berejiklian recently announced stamp duty would be temporarily axed for brand new homes priced under $800,000 for first home buyers, with the concession reducing on higher values before phasing out at $1 million. These changes are expected to save first home buyers stamp duty of up to $31,335 on a new $800,000 home.

Furthermore, the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.

The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020. This is part of the First Home buyers scheme – more details are found here.

If you’re a first home buyer, there are four other existing schemes you can benefit from.

First Home Owner Grant (New Homes) – Yes, you can get this as well as the Home Builder $25,000

If you’re a first home buyer and you’re buying or building a new home, you may qualify for a $10,000 grant under the First Home Owner Grant (New Homes) scheme.

The grant is available for contract to buy a new home, building contract by the owner of the land, owner of the land building their own home. Find out more about the scheme here.

First Home Loan Deposit Scheme (FHLDS)

Another Australian Government initiative to support eligible first home buyers purchase their first home sooner is the First Home Loan Deposit Scheme (FHLDS). It started on 1 January 2020, and through this scheme, it allows first home buyers to purchase a property with as little as a five per cent deposit and without the need to take out lenders mortgage insurance (LMI).

The Commonwealth Government guarantees the difference between what the first home buyer has saved and the 20% deposit threshold lenders usually require before they’ll provide a loan without LMI. The government says this could save first home buyers as much as $10,000. Find out more about this scheme here.

First home super saver scheme

This one is not widely known yet we believe it can be very beneficial. The First home super saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability.

The FHSS scheme allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of superannuation (15%).

You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions. (This could save you Over $5000 + on tax, going to your home deposit instead if you earn $50,000 PA). Find out more about this scheme here.

Whether you are a first home buyer, or already own a property, you are thinking of buying or moving in the future, with interest rates so low, we believe now is the time to buy.

Review your finances, talk to your bank or a mortgage specialist to find out what you could afford to borrow, and look into the grants and various schemes available.

Being one of Newcastle’s longest established real estate offices, our innovative and experienced team can give you some hints and tips and points to consider wherever you are in your property ownership journey.

If you have any queries about selling your house at this time, or would like a free, no obligation quote, give us a call on 02 4954 8833.