If you're thinking about buying a house, 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 finance 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
While each Australian State and Territory operates 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'll 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:
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 reducing the cash rate to stimulate the economy. Since November 2020, this rate has remained at a record low 0.1%. As a result, banks 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've 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's a proposal in place which would aim to give home buyers two options when buying a house. 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'll 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.
We're helping first home buyers
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!
Find out more by contacting us on the details below.
Ph. 1300 130 932
Email: clientservices@reif.com.au
