Are you a first home buyer?
The government is aiming to reduce the pressure on housing affordability. What’s in it for me?!
- First Home Super Saver Scheme – In a bid to make saving for your first home easier, eligible individuals will be able to make pre-tax voluntary contributions to their superannuation account. From 1 July 2017, individuals will be able to deposit up to $15,000 per year, to a total of $30,000, to their superannuation account to purchase a first home. Treasurer Scott Morrison suggest that “under this plan, most first home savers will be able [to] accelerate their savings by at least 30 per cent.”
- Remember that there are other incentives for first home buyers starting from 1 July 2017, subject to approval by the Victorian Parliament:
- First home buyer grant (FHOG): There will be an increase in the FHOG from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000
- Eligible first home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG
- Stamp duty measures for first home buyers: Stamp duty (land transfer duty) will be abolished for first home buyers purchasing a home with a value <$600,000
Other news in the budget affecting property investment:
- Retirees will be encouraged to downsize, increasing the available supply of housing via preferred treatment under superannuation limits. In a bid to free up larger homes for younger families, Older Australians will be encouraged to downsize and free up housing stock. These homeowners will be given greater flexibility to contribute the proceeds of the sale of their home into superannuation
- Foreign Investment is under greater scrutiny with investors no longer being able to claim the main residence Capital Gains Tax exemption and will be charged at least $5000 annually should they leave their properties unoccupied or not available for six months or more than a year.
Dana Boyd from Tundra Mortgage Brokers is a MFAA-accredited finance broker. Find out how she can help you purchase your first home, Start the Process Today!
Disclaimer:
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product.
A one-off First home owner grant is payable to first home owners that satisfy all the eligibility criteria. To obtain more information, please refer to State Revenue Office http://www.sro.vic.gov.au/first-home-owner.
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