Things First Time Home Buyers Need to Know

If you’re someone who is looking for your own property purchase, you are most definitely not alone. According to recent official data, the bigger portion in terms of the property market is made up of first-time buyers. Additionally, there have been decreased numbers in terms of investors but more doors have been opened for schemes and offers for those who are new homebuyers.

When buying property in Australia, there are a few grants and assistance programs for those who are going to do it for the first time. But of course, there are some conditions in order to consider one eligible. One of which is that there’s a plan to live in the home not less than a year. Another one is that whatever property the buyer will purchase, it should cost less than the price threshold of the state. There are some grants that also rely on properties that are newly built, and lastly, whether the buyer is able to own a property purely for investment and has never lived in it.

How about the grants or discounts available for new homebuyers? Here are some:

Stamp Duty

When you’re about to purchase a property, you will need to pay the transfer tax which is called the stamp duty. This has actually increased along with the rise of house prices, but it is normally based on different factors. One of the advantages of this discount is its ability to give first-time property buyers to actually compete with investors when it comes to benefits from the federal government such as a lesser deposit. However, there are restrictions when you utilize this discount and can be difficult to understand.

Government Grants

There are government grants available for first time home buyers in Australia but it usually differs depending on the region or the state. Most of these grants give these first-time buyers a certain amount for the property they are eyeing. One of the benefits of a government grant is you would need a smaller amount of money to buy the property and the sooner you purchase it, the lower the price it is. Unfortunately, the grants can be hard to achieve because of the restrictions and requirements. This is what bothers a lot of buyers.

First Home Super Saver Scheme

First Home Super Saver Scheme or FHSS allows those who will purchase property for the first time save up for it by making voluntary superannuation contributions. This will start by July this year, and you can contribute up to $30,000 and withdraw that amount as well. However, this is somewhat controversial because of the access buyers have to their contribution.

These are just some examples of grants and schemes you may encounter, and whatever will work for you, it’s important to dissect the information you will be getting.

13 views0 comments