Given the sharp increase in activity in the Victorian property market since restrictions on physical inspections were eased, it’s not surprising that quite a few clients have been asking whether there were any new announcements in this week’s Federal Budget that might help boost the real estate market.
The main piece of news for the property sector from Tuesday night’s financial statement was the involved providing first home buyers with additional assistance.
Treasurer Josh Frydenberg announced that the First Home Loan Deposit scheme would be made available to an additional 10,000 first home buyers in the current financial year, as long as they are building new homes. As we mentioned in our post about this scheme in January, this scheme enables buyers to buy their first home with a deposit as low as 5 per cent while avoiding lenders’ mortgage insurance, with the Federal government acting as a guarantor on the loan.
The Treasurer also announced that the property price limit associated with these additional assistance packages would be lifted to $850,000 in the Melbourne metropolitan area, which will please those first home buyers who were finding purchasing within the previous limit of $750,000 a challenge.
Unfortunately, there was no extension to the HomeBuilder program, which has been responsible for much of the increased interest in the new home market since it was introduced in June.
Another change that could affect some older Australians and their families is the decision to make granny flats exempt from capital gains tax from July 2021, but only where a formal written agreement is in place.
At the moment, some families tend to have informal arrangements in place when a family member lives on the property in a granny flat. This can result in some issues within the family as to what should occur if the family member moves out or passes on, so further clarity would not go astray in these situations.
If you or a member of your family would benefit from some experienced, objective advice on your current property situation, be sure to give us a call at Ian Reid Buyer and Vendor Advocates on 9430 0000.
You will also find lots of helpful suggestions in our free booklet, “Fatal Real Estate Traps Exposed”.