The 2017/18 Federal Budget brought good news for first home buyers (FHBs). So if you are a potential FHB it might pay to take a look at what is now being offered. Take a look at the First Home Super Saver Scheme Fact Sheet & the First Home Super Saver Scheme – Estimator
Briefly this states “From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018.”
Housing affordability has been a hot topic as a barrier to entry into the Australian property market. Despite this, the younger generation ARE starting to enter the property market in a variety of ways – as singles, couples, rent investors, in co-ownership and also with help from family.
Currently interest rates remain at an all-time low but they WILL increase at some point. While lenders generally determine loan serviceability on a higher rate it may be preferable to save money where you can so you can borrow less to build in breathing space.
Some suggestions for getting into the market sooner:
• Your FIRST property doesn’t need to be your dream home. Perhaps consider entering the market with a smaller property more suitable as investment home? If you rent it out while continuing to live at home and save you may find your savings plus equity over time will assist you towards your dream home.
• Consider co-ownership with family with a view to going it alone further down the track.
The most important step is to DO YOUR HOMEWORK.
If you are thinking of taking advantage of the First Home Super Saver Scheme you might want to give us a call to see if we may assist you to take action in the near future, you never know you might just be able to enter the property market sooner than you imagined.