As a First Home Buyer, you could be much better placed than you might imagine to afford a home.

 

Although homes seem to cost so much more than they did when our parents bought, interest rates are at historic lows, government assistance is greater than ever, and wages are far higher than our parents could have imagined.

 

The truth is; buying a home has always involved some sacrifice but it’s not impossible and First National Real Estate has put together this guide to help you understand what financial assistance is currently available to you.

First Home Loan Deposit Scheme (First Home Guarantee)

 

Supporting eligible first home buyers purchase a home sooner.

 

• For first home buyers without a 20% deposit (subject to bank lending assessment)
• Buy a new home with 5% minimum deposit
• 35,000 places for financial year 2022/23
• Restricted to new home builds and completed stock
• Avoid paying mortgage insurance
• Government guarantees 15% difference

Regional First Home Buyer Guarantee

 

Supporting eligible regional first home buyers to purchase a home in a regional area. As with the above program but with a limit of 10,000 places for financial year 2022/23.

Family Home Guarantee

 

Supporting eligible single parents with at least one dependent child to buy a home, whether that single parent is a first home buyer or a previous home owner.

 

• 2% deposit required
• 5,000 places for financial year 2022/23
• First home buyers or previous homeowners
• New and existing homes
• Single parent with at least one dependent child
• Maximum purchase prices apply

First Home Super Saver Scheme

 

The first home super saver (FHSS) scheme allows people to save money for their first home inside their super fund. From 1 July 2017, you can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home. From 1 July 2018, you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.

 

• Salary sacrifice up to $15,000 per year into Super (up to a total of $50,000 across all years, from 1 July 2022)
• Taxed on withdrawal with 30% tax offset
• No income test
• Effectively allows saving for home deposit at 15% tax rate

 

Stamp/Transfer Duty Concessions or Waivers

 

First Home Concession – Save up to $15,925 on your first home valued under $550,000

First Home Vacant Land Concession – Save up to $7,175 when buying vacant land valued at under $400,000

Home Concession – Save up to $7,175 on the first $350,000 of the value of the residence (eligible buyers)

Regional Home Building Boost Grant – Receive $5,000 after the purchase or construction of a new house, unit or townhouse valued at less than $750,000 in eligible regional locations (ends 31.3.23)

 

Stamp/Transfer Duty Concessions or Waivers

 

First Home Buyers Assistance Scheme (FHBAS) – Full or partial exemption on Transfer Duty on homes valued at less than $800,000

First Home Buyer Choice (Property Tax) – Choose between paying existing up front transfer duty or an annual property tax (new or existing homes valued at up to $1.5m or vacant land on which you intend to build a home with a value up to $800,000.

Shared Equity Home Buyer Helper - Assists single parents (with dependent children), single people (50 years and over) and first home buyers who are employed as nurses, midwives, paramedics, teachers, early childhood educators and police officers are key workers with buying a home. The NSW Government will pay up to 40% of the purchase price of an eligible property, retaining it as equity for as long as you are eligible for Shared Equity or until you sell the property.

 

Stamp/Transfer Duty Concessions or Waivers

 

First Home Buyer Duty Exemption – Dutiable value must not exceed $600,000 to be exempt. Concession on homes valued between $600,000 and $750,000.

First Home Buyer Duty Reduction - The dutiable value must be more than $130,000 but not exceed $600,000.

Principal Place of Residence Duty Concession - The dutiable value must be more than $130,000 but not exceed $550,000.

Homebuyer Fund - If you have a 5% deposit, the Victorian Government could contribute up to 25% of the purchase price in exchange for an equivalent share in the property.

 

Stamp/Transfer Duty Concessions or Waivers

 

First Home Owner Duty Concession - 50% discount on transfer duty for homes valued at less than $600,000.

 

Stamp/Transfer Duty Concessions or Waivers

 

First home owners in South Australia can’t claim any specific stamp duty concessions.

 

Stamp/Transfer Duty Concessions or Waivers

 

House & Land Package Exemption - Buy a house and land package from a building contractor, sign the contract between 1/7/22 & 30/6/27, and pay no stamp duty.

HomeBuild Access - Access low deposit home loan options for new-built homes or vacant land where you will build a home.

 

Stamp/Transfer Duty Concessions or Waivers

 

First Home Owner Rate of Duty - If you receive the grant, or would be eligible except that you are purchasing an established home, you may be eligible for the concessional first home owner rate of duty (Pay no duty up to $430,000, $19.19 per $100 or part thereof above $430,000, $530,001+ you may be eligible for the residential rate of duty. For land, pay no duty up to $300,000. $301,001 to $400,000 - $13.01 per $100 or part thereof above $300,000, $400,001+ you may be eligible for the residential rate of duty.

 

Stamp/Transfer Duty Concessions or Waivers

 

Home Buyer Concession Scheme (HBCS) – All vacant residential land + new and established homes Stamp Duty exempt. Income thresholds apply: no dependent kids $170,000, 1 dependent kid $173,330, 2 dependent kids $176,660, 3 dependent kids $179,990, 4 dependent kids $183,320, 5+ dependent kids $186,650.

Buying a home in Australia in the 1980s was very different from buying a home in Australia today. In 1988, for example, the median house price in Australia was around $70,000, whereas in 2023 the median house price is around $700,000. This means that the cost of buying a home has increased by about ten times in the last 35 years.

 

In 1988, interest rates were much higher than they are today. The average interest rate on a mortgage was around 18%, compared to around 2% in 2023. This means that the cost of borrowing money to buy a home was much higher in the 80s, making it more difficult for people to afford a mortgage.

A. What you can afford to spend is obviously determined by government grants, your current income and financial commitments as well as your savings and credit history.

 

You should carefully consider your current and future living expenses so you’ll be assured you can repay your loan and maintain the quality of lifestyle you’ll require. Once you know this, you can start talking to mortgage brokers and they will quickly give you an idea of what your buying budget will be.

A. We recommend you visit www.firstnational.com.au where you will find our answers to the most common questions about buying your first home. Don’t be shy though; if you don’t see the answer to your specific question, just click the ‘get in contact’ link under our main menu and send us your question.

 

Most people start their search with an image of the property they would like to buy in their mind. Frequently they have a short list of suburbs they’re interested in as well.

A. You should absolutely ask if there are any known issues with the property, such as mould, pest infestations, or structural problems. That’s just for starters.

 

You should also ask if there are any Material Facts that buyers would want to be aware of. Agents are required, by law, to inform you of any fact that you would reasonably want to know about before buying. This could include things like whether somebody has died in the property, whether there’s any history of illegal activity or violent crime, or whether there are any problem neighbours nearby.

A. There are two ways.

 

An unconditional offer is when you offer an amount to buy the house as listed (with or without drapes, fixtures, etc.) without adding or negotiating any other conditions. Ask the agent for a copy of The Contract of Sale as it outlines everything that is included and specifies anything that is not.

A. You can either turn up to the auction and bid or make an offer prior, but it needs to be strong enough that the owner doesn’t think they’ll do better on the day.

 

If you’re going to make a bid before auction, make sure you’re ready to sign the contract and act quickly. There may be other buyers who have indicated to the agent that they want to be kept informed of any pre-auction offers that the vendor is likely to accept. In fairness to all parties who may have spent money on their enquiries and are preparing to bid at auction, the agent is obliged to inform them if the vendor has accepted an offer prior - verbally.

A. There’s a lot of detail around who’s eligible, limits on purchase prices, places or types of properties you can or can’t buy, and grants and waivers that are specific to your state or territory.

 

Head straight to www.firsthome.gov.au where you can access all this additional information.

While every effort has been made to assure the accuracy of this information, government financial assistance is subject to frequent changes and prospective purchasers should rely on their own inquiries. The latest information is available at www.firsthome.gov.au.