5 options for first home buyers

I was asked over the weekend by a friend’s daughter what schemes are currently in place for first home buyers. It turned into an hour-long discussion and it dawned on me there are so many options at present that it’s all pretty confusing. So I thought a short summary of each scheme might be useful, with links to the appropriate government information websites for further reading.

1. First Home Buyers Grant (New Homes) – a grant of $10,000 if you purchase land and build or purchase a newly constructed home.

2. First Home Buyer Assistance Scheme – no stamp duty payable if purchase price is under $650,000 and concessional rates of stamp duty payable up to $800,000.

3. First Home Guarantee – a Federal Government scheme allowing first home buyers will deposits of 5% or more receive a government guarantee for up to 15% of their loan to allow a property to be purchased without needing to pay lenders mortgage insurance.  Other conditions apply and limited spots available so worth putting your name down for now.

4. First Home Buyer Choice – coming soon a scheme that allows first home buyers to elect to pay an annual property tax instead of stamp duty. Only really applicable if you purchase a property over the threshold for the assistance scheme which is $650,000 but could be really beneficial if purchasing for $1m and up to the threshold of $1.5m.

5. First Home Super Saver Scheme – allows first home buyers to save a deposit for a home inside their super fund.

Ian Pepper is a real estate agent and finance professional who advertises in the Flame's monthly magazine