Five Reasons Why Buying Your First Home Has Never Been Easier
Feature image courtesy of Bold Living.
Buying a block of land and building a home is still the Great Australian Dream. But for the last few years the dream has been difficult for many to achieve with market uncertainty and tight-fisted banks putting up seemingly insurmountable obstacles.
But things are changing.
The next 12 months is expected to see the strong surge of first home buyer activity over the last two months continue to accelerate as conditions improve. Here are five reasons 2020 will be a great year to buy your first home.
1. First Home Loan Deposit Scheme
The Federal Government is coming good on their election promise to help support eligible first home buyers to enter the market by reducing the amount of deposit required.
From next year the government will provide a loan guarantee of up to 15% of the property’s value to individuals earning up to $125,000, or couples earning up to $200,000 per year. The scheme could also save you up to $10,000 in lenders mortgage insurance.
Although the government is being the guarantor for the remaining 15% of the loan, first home buyers still have to eventually pay it back. Even though your lender will still do their normal checks on your financial situation, this makes it easier to get a loan without having saved for a full 20% deposit.
Applications for the scheme are expected to be hotly contested with just 10,000 packages available. Buyers are advised to have their purchase ready to go in the new year to ensure they don’t miss out.
For more information visit - https://www.nhfic.gov.au/what-we-do/fhlds/
2. Transfer Duty Concessions
The Queensland Government is providing a first home concession for transfer duty when acquiring your first residence if you meet certain requirements.
The first home concession only applies to a home valued under $550,000 and can save you up to $15,925. The home concession may still apply for a home valued over $550,000.
You do not have to be an Australian citizen or permanent resident to claim a concession, but you must still meet the eligibility criteria.
The first home concession is calculated at the home concession rate minus the first home concession amount.
If the home is valued at $500,000 or under, the first home concession amount will match the home concession rate, resulting in no duty payable.
3. Record Low Interest Rates
The Reserve Bank of Australia (RBA) recently made back-to-back interest rate cuts with rates now at their lowest level in decades. Three of Australia’s four largest banks now offer fixed home loan interest rates below 3%.
Some economists are predicting further cuts in 2020 with virtually nobody forecasting rate increases any time soon.
In a recent speech Reserve Bank Governor Philip Lowe said it was likely that interest rates would stay "low" for an extended period while the forecast remains for Australia's economic growth to pick up, and to reach about 3 per cent in 2021.
"This pick-up in growth should see a reduction in the unemployment rate and a lift in inflation," Dr Lowe said. "So we are expecting things to be moving in the right direction, although only gradually."
4. Access to Super
The First Home Super Saver (FHSS) scheme was introduced by the Australian Government to reduce pressure on housing affordability.
The FHSS scheme allows you to save money for your first home inside your superannuation fund. This will help first home buyers save faster with the concessional tax treatment of super.
Through the First Home Super Saver Scheme (FHSSS), first-home buyers may be able to use Australia’s superannuation system as a tax-effective way to save for part of their home deposit.
Under the scheme you can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home. Once you are ready to buy your first home you can apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these amounts.
5. Great Deals on Offer
Increasing competition across many major development areas, including the Ripley Valley, means there are plenty of great deals available for buyers.
Current deals at Providence include a brand new four bedroom, two bathroom, Simonds home on a 375sqm block from $441,188. The offer includes $19,000 worth of free options including split system air-conditioners, concrete driveway and remote control garage door. Download the Kakadu Flyer here.
Top builder Bold Living is also offering some great Christmas deals with their Hudson 238 house and land package (pictured below) available from $495,669. The amazing double storey home includes Colorbond roof, high ceilings on the ground floor, floor coverings throughout, Caeserstone benchtops and a 16-week build time. Download the Hudson 238 Flyer here.
For more information about these house and land packages, please contact our sales team.
TAKE A TOUR
Buyers are welcome to join our regular “Open Providence Tours” hosted by our Sales Manager Jamie Martin. Each tour includes a visit to all our existing and upcoming infrastructure and community facilities as well as available homesites.
Providence is the largest masterplanned community in the Ripley Valley is already home to more than 3,000 people.
To book your tour please call our sales team on 1800 604 246.