Conditions for first home buyers have improved drastically in the last year. New incentives and a cooling property market are providing the perfect opportunity for first home buyers to break in.
Stamp duty cuts
Stamp duty is one of the biggest costs when it comes to buying a property, but last year the NSW and Victorian governments brought in stamp duty changes to help ease the burden on first home buyers.
From 1 July 2017 eligible first home buyers in NSW no longer have to pay stamp duty on properties under $650,000, with concessions available for those who purchase properties up to $800,000.
In Victoria, eligible first home buyers are exempt from paying duty for properties under $600,000, with concessions available for properties up to $750,000.
Stamp duty concessions for first home buyers are also available in most other states and territories in Australia.
First home owner grants
Eligible first home buyers can take advantage of first home buyers grants offered in each state and territory.
Each state and territory offers differing conditions and amounts, however all encourage the purchase of a newly built home.
Visit your state’s office of revenue website to find out more about what is available.
Super plan to boost savings
The federal government has passed legislation that allows first home buyers to salary sacrifice into their super fund. This means that eligible individuals can put away a total of $30,000 into their super ($15,000 a year). Depending on your individual circumstances this may be a way to save faster for a home loan deposit than by using a regular savings account.
A number of changes were made in the last federal budget to discourage investors and foreign buyers from the property market. This is helping to ease buying competition in a number of areas, which is providing the perfect opportunity for first home buyers to swoop in.