Housing affordability may have been a central feature in the 2017 federal budget, but no new measures were introduced this year to help struggling homebuyers.
However, while many first homeowners are likely to be disappointed by the latest budget, real investors are breathing a sigh of relief.
A small victory for property investors
While there were no new incentives to entice real estate investors, many considered this year’s budget a small win. There were rumours that negative gearing and CGT rules and exemptions would change, but this hasn’t been the case.
Land bankers haven’t been so lucky. Changes will be brought in from July 2019 that will mean that property owners will no longer be able to claim expenses such as council rates and maintenance costs for vacant land in their tax returns.
What can first homebuyers do?
Last year’s budget introduced the First Home Super Saver Scheme to help first home buyers save for a home faster. There may not be any new schemes for first time buyers this year but there are a number of things that buyers can do to help get into the market sooner.
– Save, save save! – While this might sound obvious, this is the most sure-fire way to get into the market faster. Try to be disciplined with spending and come up with a plan that will help you save for a deposit sooner.
– Use government incentives – While the federal government may not be much help, many states and territories offer grants or stamp duty concessions for first home buyers. Visit www.firsthome.gov.au to find out what is on offer in your state.
– Shop around for a home loan – Compare different home loans and see if you can find one that allows you to buy with a smaller deposit. For help finding a home loan contact Professionals Finance.
To read the complete 2018/19 Federal Budget visit www.budget.gov.au.