When it comes to real estate, timing is everything. 2020 brings with it record low interest rates and new government incentives designed to help first home buyers, which means now could be the perfect time to dive in and purchase the property you’ve been dreaming of.
We’ve put together a comprehensive checklist to help you make the most of what’s on offer.
FIRST HOME SUPER SAVER SCHEME
This Australian Government scheme was introduced in 2017 as a way to help first home buyers speed up their savings for a loan deposit.
If you’re eligible to take part in the scheme, you can move your savings into your superannuation. It means you can take advantage of the tax breaks offered by salary sacrificing into your super fund, and channel more of your hard-earned cash into your deposit.
FIRST HOME LOAN DEPOSIT SCHEME
The Federal Government’s First Home Loan Deposit Scheme (FHLDS) came into effect on January 1, giving first-time buyers the chance to own a home sooner.
By acting as a ‘guarantor’ for up to 10,000 eligible home loans per year, the FHLDS enables first home buyers to purchase property with as little as 5% deposit.
Before the Scheme, these buyers would need to save at least a 20% deposit, ask parents or family to guarantor their loan, or face Lenders Mortgage Insurance (LMI) – which can cost thousands of dollars.
There are property price thresholds in place, just search by suburb to see where they sit near you. For Greenbank, the threshold is $475,000, with many choices available in the Everleigh community under this mark - from homesites to house and land packages and new ready-built homes.
FIRST HOME OWNER GRANT
One of the most well-known grants available for first home buyers is the State Government’s $15,000 First Home Owners’ Grant (FHOG).
If you’re building or buying a brand new home in Queensland (that is valued under $750,000), it is your first property, and you plan to live there within the first year, the Government will chip in towards the purchase price.
This can go towards a house, townhouse or unit and you can buy off-the-plan or build – it just needs to be a brand new dwelling to qualify for the grant.
INTEREST RATES AT RECORD LOWS
The Reserve Bank of Australia’s cash rate remains at a record low, after leaving interest rates on hold at 0.75 per cent during its first meeting of the year.
This means home loan providers are offering some of the cheapest interest rates ever seen, with comparison rates sitting below 3%.
Cheaper interest rates can significantly lower repayment amounts for borrowers, freeing up funds (which can be used to pay off your loan faster). So be sure to shop around when it comes to your home loan, and find the best finance deal for your situation.
QUEENSLAND TRANSFER DUTY (Stamp Duty)
Transfer duty (or stamp duty as it is otherwise known) applies whenever you sell, buy or transfer property in Queensland.
If you meet the requirements for the FHOG, you might well be entitled to a concession on your transfer duty, potentially saving you up to $15,925 at settlement.
AN ADDRESS TO ADMIRE
With plenty of house and land packages, turn-key homes and land lots falling within the FHLDS's $475,000 threshold for Greenbank, and eligible for the FHOG, Everleigh could be just the address you’ve been searching for.
Our new masterplanned community in the heart of Greenbank features affordable quality homes, green open spaces and easy access to local amenities (including a planned state primary school and neighbourhood centre).
Chris and Eileen from the Everleigh sales team are wonderful resources if you have any questions about buying your first home and taking advantage of the schemes, grants and concessions currently available.
Just visit 56 Kessels Boulevard between 10am and 5pm daily for a chat.
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.