On Tuesday night, the Australian Government revealed the 2021-22 Federal Budget which reiterated its commitment to helping more Australians realise their goal of home ownership. The budget contains help for single parents and more first-time buyers to get into the property market. There are grants, schemes, and measures which will assist those purchasing and those considering selling their home. Here’s what we know about the revealed measures:
HomeBuilder was introduced in June, 2020 to motivate eligible home owners to build new homes or significantly renovate existing homes, thereby boasting the construction sector. Eligible owner-occupiers, including first home buyers, can access a one-off $25,000 incentive to build or buy a new home, or renovate their existing home. The Federal Budget revealed a 12-month extension of the HomeBuilder construction commencement period for existing applicants.
New Home Guarantee
The New Home Guarantee scheme assists first home owners, build or purchase a new home, who have a deposit as low as 5%. Established properties are not eligible for this scheme. The Federal Budget announced an extra 10,000 places in this scheme for 2021-22. This is very welcoming news for regional communities, as the budget highlights regional housing demand is growing much faster than demand in metropolitan cities – predominantly due to the HomeBuilder and New Home Guarantee schemes.
Family Home Guarantee
Under this policy, eligible single parents with dependents, will be given assistance to purchase property with the government to guarantee 18% of a home loan. This enables eligible single parents to purchase a property with a 2% deposit, without the need to pay Lenders Mortgage Insurance (LMI). The Family Home Guarantee is open to 10,000 places, and does extend to both new and existing homes, and isn’t limited to first home buyers.
First Home Super Saver Scheme (FHSSS)
The FHSSS allows eligible first home buyers to release voluntary superannuation contributions to put towards a home deposit. Under the scheme, superannuation contributions made by employers and spouse contributions, cannot be released. The Federal Budget announced an increase to the maximum amount of voluntary contributions that can be released, from $30,000 to $50,000 (per applicant).
If you own a home and are thinking of downsizing, there are some incentives in the 2021-22 Federal Budget that may assist, particularly the “downsizer superannuation contribution”.
Announced previously in the 2017-2018 Budget, the measure allows older Australians to make a tax-free contribution to their superannuation of up to $300,000 (per applicant), from the proceeds of selling their family home. This will not be counted toward the contribution cap.
From July 2022, Australians who are 60 and older (previously 65 and older), will be able to access this scheme. This is aimed at not only benefitting retirees, but also attempting to address the problem of housing affordability by increasing supply – especially as house prices have been rising more rapidly than unit prices.
With Mark being one of Mildura’s most trusted real estate agents, he is well placed to provide you with his view of the current market and how best to approach downsizing. He’ll thoroughly guide you through the sales process and help you take advantage of this opportune time in the market.
Increase in buyer interest
While this budget does not change the fundamentals of Australia’s housing system, it does aim to help more people into home ownership, and we are already seeing a significant increase in buyer interest and activity.
Buying or selling a home is a complex process that takes time. An experienced real estate agent will always listen to your wishes and needs, and act purely in your best interests. If you are finding it difficult to know where to start with searching for a property, or selling your existing property, speak with Mark who can help with timely market information.
With Mark being one of Mildura’s most trusted real estate agents, he is well placed to provide you with his view of the current market from both a buyer’s and vendor’s perspective.