Buying your first home?

by
Lauren
Tips for First Home Buyers

There has never been a better time to buy (and build)!

With home ownership still considered a vital part of our way of life, wellbeing and security in Australia, it is no wonder that the current economic climate is paving the way for First Home Buyers to re-emerge and buy into the real estate market!

With financial Lenders having relaxed their lending criteria, record low interest rates, Government grants and the new Government First Home Loan Deposit Scheme to launch on 1st January 2020, we want to ensure that you have access to accurate resources and information to better inform and prepare you for the opportunities available, to help get you into your first home sooner.

Of course, we do recommend as a first step that you discuss your eligibility and availablility to comply for these schemes/grants with your financial advisor, solicitor or conveyancer, as the application process and ability to work out what solution is best for you, can often be tricky.

 

To help, here is a summary of the four schemes currently available in NSW:

 

First Home Loan Deposit Scheme - Launching 1/01/2020

 

  • A new scheme to help eligible first home buyers into the property market.
  • Open to eligible first home buyers who have saved a deposit of at least 5% of the home’s value.
  • The Government then guarantees the additional amount needed to reach the required 20% deposit.
  • The scheme will be capped to an annual maximum of 10,000 loans on a ‘first-in, best-dressed’ basis.

 

First Home Buyer Assistance Scheme

  • A scheme that entitles first home buyers a concessional rate on their transfer duty (stamp duty) or even an exemption altogether.
  • This scheme applies to those buying an existing home, a new home and vacant land upon which you intend to build.
  • You won’t pay any transfer duty if your land is valued at less than $350,000 or new home is less than $650,000.
  • For land valued between $350,000 and $450,000 or new home value between $650,000 and $800,000 you’ll receive a concessional rate.

 

First Home Owners Grant

  • If you’re a first home buyer buying or building a new home, you may qualify for a $10,000 grant, if your purchase date was on or after 1 January 2016.
  • A cash grant of $10,000 can be used to contribute towards the purchase price.
  • This grant is available in conjunction with other schemes.
  • It must be a new home that no one has lived in before.
  • You can make a claim for the First Home Owner Grant if your newly constructed home or a substantially renovated home has a total value less than $600,000 OR the land for building and any dwelling you intend to build has a combined value less than $750,000.

 

First Home Super Saver Scheme

  • A scheme that lets you make voluntary before-tax and after-tax contributions into your super fund to save for your first home.
  • You can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.
  • You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year and up to a total of $30,000 contributions across all years.

For our full overview on these four schemes and links for additional information CLICK HERE