WHAT YOU NEED TO KNOW FROM THE BUDGET 2017
With house prices continually increasing it’s harder than ever for first home buyers to get into the market. A lot of pressure has been put on both state and federal governments to fix this affordability crisis and in the lead up to the announcement of the Federal Budget there has been much debate in what the Government will do. So what’s in it for first home buyers? iThink Property Sales Agent Mark Costello, who has been helping first home buyers secure properties has got the low down on how first home buyers will be impacted by the 2017 Budget.
The biggest hurdle for first home buyers is saving for a deposit. With this in mind the 2017 Budget has introduced a new ‘super’ saving measure which gives first home buyers more incentive to get into the market.
From July 1 you can start saving for a home deposit by making voluntary super contributions into your superannuation account. Individuals will be able to contribute $15,000 a year and $30,000 all up. This amount is per person so couples can really benefit by amassing double! Savers will be able to withdraw their savings from July 1 2018 and will be taxed at a lower rate.
While for some first home buyers this $30,000 capped amount may not pay for an entire deposit it will represent a valuable contribution to your first home. The Government believes this will help first home buyers save for a deposit 30% faster compared with saving through a standard deposit account.
It’s also important to remember that the from midnight on June 30 2017 the $20, 000 first home buyers grant drops back to the original $15,000. To be eligible for the grant you must be an Australian citizen or permanent resident, must not have previously owned property in Australia, must be at least 18 years of age and must be buying a brand new building or home valued under $750,000.
Here are some more saving tips for First Home Buyers:
Budget & make sacrifices
Budgeting is not the most exciting thing to do but it does give you control over your finances and can help you save a lot faster. Budgeting also means it is time to make some sacrifices and become more conscious of your spending.
Split savings into different spots
This one ties in nicely with the new super saver scheme. Try saving money into different accounts. Set up a ‘bills account’, ‘holiday savings account’ or a ‘house saving account’. By putting amounts in different account this could help you save faster without you even knowing!
Don’t aim for your ideal home
Try to remember its more important to get into the market than finding your dream home. Make a list of your must-haves and be realistic when a suitable one comes along. You must also be prepared to sacrifice on location or quality a bit and use this first property as your stepping stone to buying a better house down the line.
Make it fun
Saving can always seem a bit boring but set your priorities, plan and reward yourself along the way. Once you achieved a goal reward yourself. But make sure it’s not too pricey or you’ll undo all your work!
0456 904 000
Going above and beyond for his clients is all part of Mark’s service, professionalism and commitment to success. With a love of meeting new people and a genuine and long held passion for real estate and property, Mark is relishing the opportunity to help clients meet their dreams, particularly first home buyers.