October 27, 2020

How First Home Buyers Can Get Ahead In 2020

Rising property prices and an increased cost of living means the great Australian dream of homeownership has been out of reach for many young people.

But thanks to several government grants and schemes, 2020 is a great year to be a first home buyer. Here are some great ways to save big and find your dream home.

From the First Home Owner Grant to your own super

Spend a bit of time researching your options and you’ll find a wealth of opportunities as a first home buyer.

The most obvious one is the First Home Owner Grant (FHOG), where you can get $15,000 towards buying or building your first property, so long as you meet the eligibility requirements.

There’s also the First Home Loan Deposit Scheme – a government initiative intended to support first home buyers who may have as little as a 5% deposit get into the property market. If you are eligible, the government will guarantee up to 15% of your home loan, which means you could buy with a 5% deposit but avoid the substantial costs of taking out lender’s mortgage insurance (LMI).

Finally, you may want to look into the First Home Super Saver Scheme. This is a way for you to use up to $30,000 of additional, voluntary super contributions (over two years) towards the purchase of your first property, and take advantage of the lower tax rate on super contributions by doing so.

Create your dream property with HomeBuilder

One of the ways the government has tried to stimulate the economy during COVID-19 is with the introduction of the HomeBuilder scheme. There are a number of ways you can take advantage of the $25,000 on offer. Maybe you want to purchase some land and build your dream property. Or perhaps you want to buy a fixer-upper and then undertake a major renovation.

Whatever your plans, so long as the build is valued between $150,000 and $750,000 and you meet the other criteria, you may be eligible for a substantial cash injection. But you’ll need to be quick to take advantage of this one – building contracts need to be signed before the end of 2020 and you have to commence work within three months of signing.

Buyers in regional Queensland can also apply for the $5,000 boost payment, if they are purchasing or building a new house, unit or townhouse under $750,000.

Take advantage of the First Home Concession

One of the biggest benefits of being a first home buyer in Queensland is that you can claim a hefty concession for transfer duty. So long as the property you’re buying is no more than $550,000 and you meet other eligibility requirements, you can save up to $15,925 with the First Home Concession.

What you can buy in Toowoomba under the price caps

Depending on the grant or scheme you intend to take advantage of – or multiple, if you are eligible – you’ll need to take into account the price cap. For example, while the First Home Owner Grant is available on properties up to $750,000, you’ll need to stay under the $550,000 mark if you plan on getting the First Home Concession. Do note, however, that the standard home concession could still apply for homes valued above $550,000.

So, what does that mean for buying a property in Toowoomba? You can move to the tucked-away suburb of Geham and enjoy almost 10,000 sqm of land with this three-bedroom marvel for just $549,000. Looking for something a little larger for your growing family? You may still be eligible for the FHOG and live in the sought-after suburb of Rangeville with this sprawling five-bedroom home accepting offers in the mid-$700,000s.

Take advantage of the market today

There’s no better time to be a first home buyer, with a variety of grants and schemes at your disposal. If you’re ready to jump into the market, contact an experienced local agent today and let us help you find your dream home.

Article by Jacqui Walker

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