How Will The 2021/22 Budget Effect Your Dreams Of Home Ownership?
This year's budget is sounding very promising in helping people get onto the property ladder with a range of new schemes and updates to some of the existing ones.
Helping you save more
Tax Cuts - Federal Treasurer Josh Frydenberg has presented tax cuts for more than 10 million people (which will reportedly see low and middle income earners benefit by up to $1,080 for individuals or $2,160 for couples). This is a brilliant way to help you boost your savings.
First Home Super Saver Scheme - Will also increase the maximum amount of voluntary contributions that can be released from $30,000 to $50,000 to enable home buyers to "bolster their deposit". 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.
What new homeowner incentives are there?
Family Home Guarantee - Starting on 1 July 2021, the new guarantee aims to support divorced or separated parents with dependent children by enabling them to purchase a home sooner with a deposit of as little as 2 percent. The government will guarantee up to a maximum of 18 percent of the property purchase price, allowing the applicant to get a loan without paying lender’s mortgage insurance.
Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.
FHLDS (New Homes) scheme - launched last year the government will be providing an additional 10,000 places in 2021-22. This is another great incentive that allows you to purchase or build a new home with only 5% deposit and not have to pay LMI, saving you potentially $10,000+.
First Home Owners’ Grant - Up to $15,000 deposit towards your new home purchase
First Home Concession - Wherein first home buyers pay no stamp duty for both new and existing property purchases under $550,000, a discount (concession) may still apply for a home valued over $550,000.
If you would like to find out if you qualify for any of these grants and how much deposit you would need then contact us today to get started on your new home journey.
Please note the grants and value of each scheme varies between states and can change at any time.