It was said to be one of the most essential budgets in Australia’s history, but as is often the case, there wasn’t a lot on offer for property investors.
However, as we’ve seen over the past 12 months, there continues to be a significant focus on helping first home buyers get into the property market.
Family Home Guarantee for Single Parents
The most notable new inclusion into the Federal Government Budget was the Family Home Guarantee. This is a program that, on the surface, appears to be very similar to the FLDS.
This program will allow single parents to purchase a home with as little as a 2% deposit, and this will be available to 10,000 households over the next four years.
First Home Super Saver Scheme
The First Home Super Saver Scheme has been in place for several years. However, this year’s budget has increased the limit of super that first home buyers can access.
Previously a first home buyer could access $30,000 of super, and this has not been raised to $50,000.
New Home Guarantee
The New Home Guarantee, which many people might know as the First Home Loan Deposit Scheme (FHLDS), was repurchased for another year, with 10,000 again available.
This program allows first home buyers to put down as little as a 5% deposit without the need to pay Lenders Mortgage Insurance (LMI), with the Federal Government effectively guaranteeing the deposit shortfall.
One of the past 12 months’ highlights has been the HomeBuilder scheme, which saw a rush from many looking to build or renovate.
The scheme has now officially been wound down; however, as we know, the period in which construction needs to commence has been pushed out to 18 months because of the log-jam of applicants that need to get started building to access the grants.
As house prices continue to rise across the country, affordable housing and the social issues associated with rising house prices will likely continue to be an issue for many years to come.