Help for Home Buyers
Sometimes it feels as if you’re taking on this exciting yet challenging adventure of home-buying all alone. But never fear, there is currently a range of Government Incentives available, and you may be eligible for more than you think. Let’s take a look at the financial assistance, grants, and incentives available when you buy a house in 2021.
First Home Owners Grant
The First Home Owners Grant is a good place to start if you’ve never owned your own property before. For regional locations like Armstrong Creek, you may be eligible for a very handy $10,000 from the government. To get this you’ll need to sign a contract to buy or build a new home for less than $750,000. Speak to a member of our sales team on the latest land availability and releases at Anchoridge. To find out more about this grant, visit here.
First Home Loan Deposit Scheme
Typically, when you buy a property you’ll try to save up a 20% deposit to avoid having to pay thousands extra in Lender’s Mortgage Insurance, and so that your bank balance looks impressive enough for financial institutions to want to lend money to you. However, this scheme means the government vouches for you by being a guarantor for the extra 15% - meaning you’ll only need a 5% deposit. There are only 10,000 places each financial year, you are limited to 27 approved lenders and any brand new property must cost less than $850,000. To find out more about this scheme, visit here.
Family Home Guarantee
If you’re a single parent with an annual taxable income of $125,000 or less, the new Family Home Guarantee may help you get into the property market sooner to secure your family’s future. This one’s similar to the First Home Loan Deposit Scheme above but you’ll only have to save a 2% deposit and it doesn’t have to be the first home you own. If you’re eligible, this guarantee will become available from 1st July 2021. To find out more, visit here.
First Home Super Saver SchemeAnother option for first home buyers is the First Home Super Saver Scheme. You’ll basically sacrifice some of your salary to make extra voluntary contributionsinto your Super Fund. This means that aportion of your income won’t be taxed as highly as it usually would be, so you’ll be able to save up faster. Later, you can withdraw those savings (plus any interest you’ve earned on them in the meantime) to help you pay for a home deposit. To find out more about this scheme, visit here.
Land Transfer Duty (Stamp Duty)
There are also various Land Transfer Duty (Stamp Duty) exemptions and concessions depending on whether you’re a first home buyer or pensioner, if the home will be your principal place of residence,if you have a child or if you’re buying-off-the-plan. As stamp duty is calculated as a percentage of the property’s value, not paying the full amount will save you thousands! How nice would it be to spend that money on a luxurious carpet, a comfier couch, or a new home entertainment system instead? The State Revenue Office’s guide will help you find out if you and the home you’ve got your eye on is eligible. As always, experts are invaluable to have in your corner. An experienced mortgage broker or financial advisor should explain the above in full detail and tailor the best options to your situation.