2020 Prime for First Home Buyers

If you’ve been thinking of entering the property market, it seems as if the stars have aligned, with the new year bringing a wealth of reasons to step on to that first rung on the real estate ladder.

From saving incentives, to record low interest rates and fee concessions all available, first home buyers are set up for success like never before.

 

FIRST HOME SUPER SAVER SCHEME

The FHSS scheme was brought in by the Australian Government in 2017 to help first home buyers tuck away savings for a home loan deposit faster.

If you’re eligible, it means you can keep your savings inside your superannuation fund and benefit from the tax breaks offered through super, giving you the ability to hit that magic deposit goal a lot sooner.

 

FIRST HOME OWNER GRANT

Eligible Queenslanders can apply for the State Government’s First Home Owners’ Grant, which is aimed at getting first home buyers into a new property sooner.

If you’re purchasing or building a brand new home (valued under $750,000), have never owned a property before and will be living at that address within the first year, you can get $15,000 to put towards the purchase price.

This grant applies to new houses, townhouses and units, and can be used to buy off-the-plan or to build yourself - it just needs to be used to purchase a brand new dwelling.

 

QLD TRANSFER DUTY CONCESSIONS

If you apply for the Queensland FHOG, there’s a good chance you’ll also be entitled to a concession on transfer duty (also known as stamp duty).

First home buyers who purchase a home (valued under $550,000) can save up to $15,925 on the transfer duty that applies whenever you sell, buy or transfer property in Queensland.

Like the FHOG, there are certain conditions to the concession, and you are required to live in the home for the first year of ownership.

 

FIRST HOME LOAN DEPOSIT SCHEME

The start of 2020 brought with it the introduction of the Federal Government’s First Home Loan Deposit Scheme.

It allows the Government to act as ‘guarantor’ for first home buyers, meaning those entering the market only need to save a home loan deposit of 5% or more.

This eliminates the need for parents or family to act as guarantors, and helps avoid the cost of Lenders Mortgage Insurance (LMI) - potentially saving buyers thousands of dollars.

There are property price thresholds in place, you can search by suburb to see where they sit near you.

 

RECORD LOW INTEREST RATES

Mortgage interest rates are at record lows, after the Reserve Bank of Australia decided to lower the cash rate by 25 basis points to 0.75 per cent in October of last year.

It means borrowers can save on interest on their mortgage - or better yet - put that difference towards paying down the principle on their loan faster.

With home loan comparison rates now sitting below 3%, it’s a great time to do some research, or engage a mortgage broker, and negotiate the perfect finance deal for your first home.

 

A FIRST HOME THAT FITS

If you’re considering buying or building your first home, chat to the Gainsborough Greens sales team for help and advice on the entire process, including all of the available incentives and updates.

Our thriving residential community, with a dedication to green open space and a well-connected neighbourhood, is the ideal setting for first home buyers looking for value-for-money as well as an enviable and active lifestyle.

You can find us on 8 Swan Road, Pimpama, between 10am and 5pm every day of the week. We look forward to meeting you and ensuring you get the most from your first home purchase.

 

We hope this information helps! Please remember, this article is only general in nature and shouldn’t be taken as professional advice. We recommend you seek independent advice on your individual financial situation.