With a raft of new housing measures brought in from both the state and federal government to tackle housing affordability, there’s no better time for first home buyers to start looking at their property options.
As part of this year’s federal budget, changes were made to help young people save more using their super account.
From July 1, first homebuyers will be able to contribute up to $30,000 of voluntary superannuation payments ($15,000 per year), which can be used towards a deposit on a first home.
Contributions, plus the earnings generated from those savings, will be able to be withdrawn from July 1, 2018.
On top of this, the NSW state government announced that from July 1 they will be abolishing all stamp duty fees for first home buyers buying existing and new homes up to $650,000, with stamp duty discounts also available for properties valued up to $800,000.
Stamp duty charges on lenders’ mortgage insurance will also be eradicated.
These changes will provide significant savings for first home buyers and help them get into the market sooner rather than later.
With property prices escalating in Sydney over the past few years, first home buyers have struggled to gain a competitive buying edge, so these changes may be just what they need. First home buyers may also be helped by the fact that property investors are facing tougher lending restrictions, making it harder for them to get into the market.
Property investors are can be big competition first home buyers, so anything that slows down investor activity is sure to be good news for those trying to get their foot on the property ladder.
However, the latest changes won’t help those looking for properties in the higher end of the property market.
There are still quite a few suburbs where the latest changes won’t have a huge effect, however they will certainly benefit those looking to buy in affordable areas.
Another advantage that first home buyers will now have is that they won’t be restricted to purchasing a new home if they want to make stamp duty savings.
Existing properties are often more affordable than brand new properties, meaning that there are now even more opportunities for first home buyers to get into the property market for less.