Australian Government Helping First-Time Buyers
In a bid to boost the building sector and stimulate the economy, the Morrison Government is offering up more free money than ever before. There have never been so many incentives available for first-time buyers.
So, how is the government helping first-time buyers in Australia? Well, there are several different schemes on offer. Some are national, and others are State and Territory specific.
There are lump sum payments, stamp-duty waivers, reduced deposit loan schemes, building incentives and deposit saving schemes.
The Australian property market can be particularly difficult for first-time buyers. The cost of living is high, so it can be challenging to save a deposit. House prices are also high, so you need an even larger deposit which compounds the problem. For this reason, much of the government assistance on offer revolves around deposits.
Build Up Your Deposit
First-time buyers can now use their Superannuation to save towards a deposit through voluntary contributions. The First Home Super Saver Scheme is an excellent option for high-income earners as you will pay significantly less tax on your voluntary contributions. You can save a maximum of $15k per year up to a total of $30k.
Save On Insurance
The First Home Loan Deposit Scheme (FHLDS) also deals with deposits. Typically you need a deposit equal to 20% of the purchase price when buying a property. If your deposit is less than 20%, you need Lenders Mortgage Insurance (LMI) which can be quite costly. The FHLDS enables buyers to purchase a home with a minimum 5% deposit, and the government will cover the LMI cost.
Take The Money While You Can!
If you are thinking about buying a home, and you are a first-time buyer, make the most of all the government first-time buyer help while it is available. Apply for the government FHLDS, and you could buy your home with just 5% deposit. You could also qualify for a waiver on stamp duty, a $10k cash payment or both depending on where you live.