A number of government incentives and stimulus packages have been introduced this year in a bid to prop up the property market and construction sector, and no one seems to have benefitted more than first-home buyers.
While all home buyers have been able to take advantage of record low interest rates and subdued price growth, first-home owners can also take up generous first home owner concessions and make use of the federal government’s First Home Loan Deposit Scheme, of which an extra 10,000 places have just been added.
The new places were announced as part of the 2020-21 federal budget and are for newly constructed homes.
First-home buyers who take up the offer are able to get into the property market with as little as a 5 per cent home deposit, with the government guaranteeing up to 15 per cent of the loan. This means that buyers can avoid paying the thousands of dollars that needs to be spent on lenders mortgage insurance.
Given that the new places offered under the scheme are for new homes only, the price cap on eligible purchases has also been increased.
The extra places will be available until June 30, 2021.
Successful applicants for the scheme may also be eligible for the HomeBuilder program, which provides $25,000 grants for those building or substantially renovating a property.
The First Home Loan Deposit Scheme and HomeBuilder can also be coupled with state government first-home owner grants and/or stamp duty concessions. Depending on which state you live in there could be as much as $55,000 in cash on offer to help build your first home.
There have never been more government incentives available for property buyers than there is now, so if you’ve been thinking about getting into the property market then now might be the ideal time.
But you’ll want to be quick if you want to take up what’s on offer.
The original 10,000 places that were made available in the First Home Loan Deposit Scheme for the 2020-21 financial year are already filling up fast, and the HomeBuilder program requires a building contract to be signed by the end of this year.
Visit the following websites for further details:
First Home Loan Deposit Scheme –www.nhfic.gov.au/what-we-do/fhlds
HomeBuilder – https://treasury.gov.au/coronavirus/homebuilder
First home owner grants – www.firsthome.gov.au
