Why is it a good time to buy your first new home?
A range of Government assistance schemes are making the current property market highly desirable for first home buyers, particularly those looking to purchase land and build a new home.
The First Home Buyers Assistance Scheme provides first-home buyers with exemptions from transfer duty on new homes valued at less than $800,000 and concessions for new homes valued between $800,000 and $1M. No duty is payable by eligible purchasers buying a vacant block of residential land valued at up to $350,000, while concessions are available for vacant land purchased for between $350,000 and $450,000.
The First Home Owner Grant (New Home) Scheme is available to eligible buyers and offers a $10,000 grant for purchasing or constructing new homes, in an addition to the First Home Buyers Assistance Scheme benefits. The value of a newly constructed property must be under $600,000. If buying land to build a property, the combined land and dwelling value needs to be less than $750,000.
The Shared Equity Home Buyer Helper (offered to key workers) is open to individuals with a gross household income of $93,200 and a gross household income of $124,200 for couples. Eligible home buyers will need a minimum deposit of 2%, with an equity contribution from the Federal Government between 30-65% of the purchase price of a new home.
The First Home Super Saver Scheme - allows buyers to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for their first home. If eligible, you can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $50,000 contributions across all years.
The First Home Guarantee is an initiative designed to support eligible first home buyers purchase a home sooner. The National Housing Finance and Investment Corporation (NHFIC) will provide a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as 5%. The Scheme will support up to 35,000 home loans for the 2023-24 financial year, through a panel of participating lenders.
