Now Is The Perfect Time For First Home Owners
If you've been looking at buying property, now is the best time to do it! Despite the hardships we've all endured due to the pandemic, economists have stated that now is the best time to get into the market, especially for first home owners. There are currently many savings and incentives to take advantage of as the Government plans to rebuild the economy.
We've been working diligently to assist client's across the country to access the current incentives that are on offer. These grants and savings come from State and Federal level, so depending on where you're located there may be slight differences. We've compiled a few of the best incentives that you should be looking out for and taking advantage of if you're a first home owner looking to get into the property market.
First Home Owners Grant
Whilst each Australian State and Territory operates this incentive differently, this National scheme, "is payable to first home owners that satisfy all the eligibility criteria." As the legislation and criteria vary in accordance with where in Australia you choose to purchase your first home, you will need to visit their website to find out. When you buy or purchase your first home in Victoria and New South Wales, you can receive a cash grant of $10,000. For Queensland it's $15,000.
To find out more on the eligibility criteria for your State or Territory, click on the link below:
In June this year, the Australian Government established an Economic Response to the Coronavirus through the National HomeBuilder Grant. This grant has been established to assist eligible first home buyers and owner-occupiers with building or substantially renovating their home. Until the 31st of December 2020, those eligible for the grant will receive $25,000 to put towards this construction.
On the 28th of November, the Federal Government announced that they will be extending this grant to the 31st of March 2021. Anyone who applies and is approved for this grant between the 1st of January and the 31st of March, 2021 will receive $15,000 to put towards this purchase and will have six months, instead of the initial three to begin construction on their property.
In addition to the First Home Owners Grant, the Home Builder Grant will provide first home owners with a substantial cash incentive to support the build of a newly established home. For more information regarding the HomeBuilder Grant, refer to the following links:
Record Low Interest Rates
In recent months we've started to see a reduction in interest rates. Since the first wave of Coronavirus in Australia, the RBA has been significantly reducing the cash rate in order to support the economy. Since November 2020, this rate has remained at a record low 0.1%. As a result, leading lenders have started to reduce interest rates on home loans. Some lenders have even reduced their interest rates to as low as 1.89%.
According to the ABS, there has been an increase in home loan borrowing capacity from first home buyers due to these incredibly low interest rates. During the month of September, the ABS had reported 13,040 loan commitments from owner-occupier first home buyers. This is the highest figure in 11 years.
Other Incentives and Savings
In recent weeks we have seen some proposals and changes to finance and property within New South Wales and Victoria surrounding stamp duty. Stamp duty is arguably one of the biggest financial barriers to achieving home ownership. These changes will aim to make buying property easier for first home owners.
In New South Wales, there is a proposal in place which would aim to give home buyers two options when buying a home. This proposal for the 2021 budget would see that home owners in NSW receive the option of either paying an upfront payment of stamp duty or a much smaller annual property tax when purchasing a home. If this proposal is accepted in the budget, it would eliminate that huge financial barrier for first home buyers.
Last week the Victorian Government announced that they will be reducing stamp duty for new homes. Until the end of June 2021, stamp duty will be reduced by 50% for any new home builds. This will only be applicable for houses valued up to $1 million. This is another great saving for first home buyers who are building property.
How We Can Help First Home Owners
To make the most of the current grants and savings, reach out to our team at REIF. If you're a first home buyer looking at buying property, there really is no greater time than now to get into the property market! First home owners have access to the national HomeBuilder Grant and state level Home Owner Grants. You can have over $35,000 funded towards the ownership of your new home. There are also savings towards stamp duty and home loans with the incredibly low interest rates that banks are offering at the moment.
To book an appointment, click on the link which will redirect you to an application form to chat to our team of Finance and Property specialists regarding your eligibility: https://www.reif.com.au/homebuilder-grant
Alternatively, you can reach out via email or phone us on the details listed below.
Ph. 1300 130 932