What the 2021-2022 Federal Budget announcement could mean for you
Find out exactly how the recently announced Federal Government property schemes and incentives can help you realise your property dreams sooner than you thought.
This week’s Federal Budget announcement was a positive outcome for many Australians; including further incentives and schemes that are designed to help those eager to capitalise on the current boom and get a foot on the property ladder.
Caydon’s Sales and Marketing Director, Steve Williams, says that the existing schemes have allowed many Australians to realise their dream of homeownership.
“Since the introduction of HomeBuilder last year we’ve seen a number of buyers jump on the opportunity at hand,” said Steve.
“We’ve also seen a high participation of first home buyers in the market in the last 12 months, and we believe it’s more than likely that initiatives like HomeBuilder, the First Home Loan Deposit Scheme and the First Home Owner’s Grant have contributed to this.”
The extensions to the existing schemes, along with the additional schemes announced will open doors to new homes for many Australians including single parents who are set to benefit in a big way from the Family Home Guarantee.
So, what did the Federal Budget announcement include for the property sector – and more importantly, what could it mean for you?
New opportunities for single parents
Aimed at helping single parents into home ownership, the Family Home Guarantee will give buyers a helping hand by allowing them to purchase a home with just a two percent deposit.
The scheme applies to both first home buyers and those looking to re-enter the property market. Subject to the same property price caps as the FHDLS, the Family Home Guarantee will support up to 10,000 single parents with dependants and a household income of less than $125,000 over four years.
The good news continues for first home buyers
The Federal Government is expanding the First Home Loan Deposit Scheme for new homes by another 10,000 places. Under the scheme, a first home buyer who secures one of the 10,000 places will only need to have a 5% deposit saved, with the government acting as guarantor for the remaining 15%.
In addition, the First Home Super Saver Scheme has been expanded. From July 1, eligible first home buyers can release up to $50,000 of voluntary contributions from their superannuation to purchase a home, a significant increase from the previous limit of $30,000.
Downsizers set to benefit
If you own a home and are thinking about downsizing to a lower maintenance lifestyle, there are some incentives within the budget tailored to bolster your future plans.
From July 1, Australians aged over 60 will be able to make a one-off, post-tax contribution of up to $300,000 per person (or $600,000 per couple) to their super when they sell their home. Previously this scheme was only available to people aged over 65.