The economists among us will be pouring over this year’s Federal Budget once it is released on Tuesday, May 11th, and offering their collected thoughts over the following days. However, the details on some of the Budget measures aimed at assisting first home buyers have already found their way into the public gaze, so we thought we’d take a close look at those before they get lost in the full Budget analysis.
Federal Treasurer, Josh Frydenberg, said last week that the amount that first home buyers would be able to release from their own voluntary superannuation contributions under the First Home Super Saver Scheme would be increased from $30,000 to $50,000.
It was also announced that the First Home Loan Deposit Scheme, which enables first home buyers to build a new home or buy a newly built home with as little as a five per cent deposit, has been allocated another 10,000 places where the Government will act as guarantor on the home loan, (meaning that the buyer will not require Lender’s Mortgage Insurance).
One new measure that caught the eye was the Family Home Guarantee. This scheme is similar to the guarantor program above but is targeted specifically at single parents. The idea is that up to 10,000 applicant families will be able to purchase their first home with just two per cent deposit.
What we need to keep in mind is that whilst those first home buyers whop qualify for these assistance measures will certainly be feeling pleased about their introduction, it’s not great news for everyone, including many other first home buyers.
For example, if you’ve already got pre-approval from your lender to purchase your first home, the concept of having to compete with thousands of additional competitors with government assistance for the limited number of available properties is hardly likely to have you breaking out the champagne.
The other point that many people seem to be overlooking is that there doesn’t appear to be anything in the Budget that will help increase the supply of properties hitting the market, such as a push for reductions in stamp duty or a decrease in the government red tape and taxes that impact on the construction of new housing.
With property prices continuing to rise, and competition for properties continuing to frustrate so many buyers, the benefits of buying as soon as possible are clear to everyone. Of course, one of the most effective ways to gain access to the additional homes that are sold off-market each week is to have a professional Advocate sourcing property on your behalf.
If you’d like to discuss what services are available and how we can save you tens of thousands (and potentially hundreds of thousand), of dollars in the process, just give the team at Ian Reid Buyer and Vendor Advocates a call today on 9430 0000.
You’ll also find lots of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”