First home buyers in the box seat with government incentives
First home buyers are firmly in the property market box seat, with a range of incentives available to help them secure their first residential property.
The recently announced First Home Loan Deposit Scheme will come into effect on 1 January next year, allowing first home buyers to secure a mortgage with just a five per cent deposit. This new scheme can be used in conjunction with the government’s existing incentives to propel first home buyers into the property market.
First Home Loan Deposit Scheme
This new scheme was promised by both major parties in the lead-up to last month’s election and will be available to 10,000 first home buyers each year. A single person earning up to $125,000 or a couple earning up to $200,000 will be eligible. There will be regional caps on the value of residential properties, to allow for different home values across the country.
First Home Owner Grant
In NSW the grant currently gives eligible first home owners $10,000 to purchase a new home of up to $600,000 or to build a new home up to $750,000.
‘New’ means the home has not been previously occupied or sold as place of residence. A new build also includes a home that has been substantially renovated or built to replace demolished premises.
Stamp duty
First home buyers in NSW don’t have to pay stamp duty on homes valued up to $650,000. For homes between $650,000 and $800,000, a concessional rate is applied.
They also don’t pay any stamp duty on vacant land worth up to $350,000, and just a concessional rate for land between $350,000 and $450,000.
Mortgage insurance duty
Duty on lenders mortgage insurance has also been abolished for all home buyers in NSW, which will offer a saving for those with less than 20 per cent deposit.
First Home Super Saver Scheme
The FHSS scheme allows first home buyers to save money for their first home inside their superannuation fund, helping first home buyers save faster with the concessional tax treatment of super.
Putting it into practice
The soon-to-be-built Cabarita Beachside Apartments are an excellent opportunity for first home buyers. It qualifies as a new home, with most apartments under $600,000, making it eligible for the $10,0000 grant. No stamp duty will be paid, which would normally be around $20,000. This means an immediate saving of $30,000 is available.
If you are a first home buyer, seriously consider purchasing in the Cabarita Beachside Apartments. They are the perfect blend of modern apartment living and laid-back coastal charm. Built over two levels, this magnificent new elevated complex offers 38 luxury residential apartments in the heart of Cabarita Beach.
Rarely will you find a location that offers modern, urban conveniences, while maintaining a coastal village atmosphere.
This is Cabarita Beach – this is paradise!
Take advantage of the available incentives to secure your lifestyle today. If you are a first home buyer and would like to explore this further, please contact us and we will expertly guide you through your options.