If you are intending to purchase your first home in the foreseeable future, there are several government schemes on offer to assist you make the transition to home ownership.
For first home buyers in regional areas (Geelong is classified as regional) the First Home Owners Grant of $20,000 is available to eligible applicants. The home must be either new or less than 5 years old and purchased for the first time as a residence and have a value of $750,000 or less in order to qualify for the grant.
First home buyers are also entitled to an exemption on stamp duty as long as the home does not exceed $600,000. Between $600,000 and $750,000, discounts apply on a sliding scale. These exemptions and concessions apply to both new and existing homes, so there are still significant savings to be had if you’re buying an existing home and intend living in it for at least the first 12 months.
And finally, as of 1 January, 2020 the First Home Loan Deposit Scheme will be introduced whereby the Government will guarantee three quarters of a typical 20% deposit for 10,000 first home buyers. By reducing the deposit required to 5% the rationale is to speed up saving time and eliminate the need to pay lenders mortgage insurance.
For more information see
www.sro.vic.gov.au
www.nhfic.gov.au
Until next week
Nick Lord (Director)