Never before has there been so much Government support with packages to realise new home ownership sooner.
These packages mean there is a legitimate lifetime opportunity to secure bonuses, start with lower than normal deposits and pay the lowest interest rates we have seen in decades.
PLUS builders and land developers are offering highly competitive packages with extra bonuses that compound the Government incentives even further.
On the table are varying packages that suit every person differently. That’s why it’s so important to understand the ins and outs around your options and work with professionals that know the options best. Below are examples of the differing opportunities to review.
This is available to eligible applicants buying or building a new home valued at up to $750,000 in metropolitan Melbourne.
A $20,000 First Home Owner Grant is available to applicants buying or building a new home in regional Victoria valued up to $750,000.
First home buyers purchasing a new or established home valued below $600,000 will be exempt from stamp duty, while buyers purchasing a new or established home valued between $601,000 and $750,000 will be eligible for a stamp duty concession, applied on a sliding scale.
On a $600,000 new build house and land package, this saving is approximately $9,000.
This program supports eligible first home buyers purchase their first home sooner.
Usually first home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a home of their own with a deposit as little as 5% (lenders criteria also apply).
This is because the Government guarantees to a participating lender, up to 15 percent of the value of the property purchased.
This initiative can save first home buyers up to $25,000. In the Oct 4, 2020 budget, an extra 10,000 places have been reserved for first home buyers and the price caps were also raised from $600k to $850k in Melbourne.
This is a time-limited grant program has now finished. We will keep you informed if things change.
The FHSS scheme allows you to save money for your first home inside your super fund. If you can top up your super with up to an additional $15,000 you can then use this money to be part of your deposit for your home. This will help first home buyers save faster with the concessional tax treatment of superannuation.
What could this mean for you?
Let’s take a look at an example of what it means for a first home buyer looking to buy a $600,000 home and land package.
|First Home Loan Deposit Scheme – $600,000 package||15% of deposit is guaranteed by NHFIC||$20,000 Loan Mortgage Insurance saving||This makes it easier to start as the fees required are a lot less|
|First Home Owners Grant||Home valued under $750k and not regional||$10,000||You get this and don’t have to pay back|
|Stamp Duty Concession||On land only||$9,000||This is a saving as will not be required to pay|
|First Home Super Saver Scheme||Up to $15,000 if you have made additional contributions to this value||$15,000||This is smart saving as tax payable is lower|
Do you fit the criteria?
So, if you’ve been toying with the thoughts of not having to live in a rental property with flatmates and getting into your very own home, then knowing where to start and how to maximise your outcome is the key. Our boutique and bespoke approach with over 10 builders and the state’s best developers means we are positioned to help you get home ownership.
Reach out TODAY and we can work with you on how to accelerate your home buying journey.
You need to be aged 18 years or older and an Australian citizen. Exclusions apply for permanent residents with the State Government grant. You will be eligible providing they are a first home buyer.
Then each program includes other criteria including income levels, home values, construction timeframes, previous home ownership and more. We can explain all these to you.
The State packages in Victoria are also specific to the State. There are differences in other States.
It’s critically important that you understand the Government programs available.