Category Archives: First Home Buyer

New First Home Buyer Benefits – The First Home Super Saver Scheme

It was announced in the 2017/18 Federal Budget that eligible first home purchasers will be able to use the advantages of super to save for their home deposit.

The First Home Super Saver Scheme

The Government is allowing first home buyers to make voluntary contributions into super in order to save for a home.

First Home Buyers will be allowed to contribute up to $15,000 per financial year and $30,000 (over two years) in total from 1 July 2017.

From 1 July 2018 First Home Buyers will be able to apply to withdraw any voluntary contributions that they have made to their super for a deposit on their first home. The maximum amount that can be released from super is $30,000.00 of personal contributions, plus an associated deemed earnings amount.

There are many benefits, one of which is that by making these contributions by salary sacrifice, it may allow people to generate savings using super’s concessional tax rates.
Any withdrawals from a super fund will be subject to approval from the Australian Tax Office and will be taxed at the relevant marginal tax rate, less a 30% tax offset.

Time to get saving for your first home!

Speak to your Super Fund or read more here

https://www.ato.gov.au/General/New-legislation/In-detail/Super/First-home-super-saving-scheme/

Property Grants available in 2016

Property Grants available in 2016

If you are wanting to buy a new home in 2016, then there may be some property grants that could help you achieve this dream! The year has started with new legislation on how real estate agents can market properties, which is designed to make it easier for you to understand the expected sale price of homes, and interest rates have remained steady at very low rates.

There are currently three grants available in 2016 which you may be eligible for, to help you on your way to buying your first new home, or a brand new investment property.

First Home Buyers who buy a brand new home, or a vacant block of land to build your first home, can apply for free stamp duty, and a $10,000 Grant.

If you are buying a brand new home, or a vacant block of land on which a new home will be built, there is a $5000 New Home Grant – this is available regardless of whether you are buying another home, upgrading, downsizing or buying an investment property.

First Home – New Home scheme
Exemption or Concession from Stamp Duty

First Home Buyers purchasing a brand new home under $550,000 can apply for an exemption from Stamp Duty, or if the purchase price is between $550,000 and $650,000 you can apply for a discount on your Stamp Duty.

If you are buying a vacant block of residential land to build your first home for under $350,000 you can apply for an exemption from Stamp Duty, or if the purchase price is between $350,000 and $450,000 you can apply for a discount on your Stamp Duty.

First Home Owner Grant (New Homes) scheme
$10,000 Grant

First Home Buyers purchasing a brand new home, or vacant block of residential land to build your first home for under $750,000 can apply for the $10,000 First Home Owner Grant (New Homes).

To be eligible for the “First Home – New Home Scheme”, or “First Home Owner Grant” above:

  • at least one buyer must be an Australian citizen or permanent resident
  • the agreement must be for the purchase of the whole property
  • you must be a natural person (not a company or trust)
  • you must be over 18 years old
  • the home is a brand new home
  • you or your partner have not previously owned property in any form in Australia
  • at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.

New Home Grant scheme
$5,000 Grant

If you are purchasing a brand new home (including “off the plan”), or vacant land on which a new home will be built then you can apply for the $5,000 New Home Grant. The Grant is paid by reducing your Stamp Duty costs, and if there is any money left over, then this would be paid to you by cheque.

You can apply for the Grant more than once, but it is limited to once per financial year. You can be a natural person, a company or trustee of a trust, and the grant is available to investors as well as owner occupiers.

To be eligible for the New Home Grant:

  • Applications must be made within 3 months of the date of exchange of Contracts.
  • The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
  • For vacant land, construction of the home (by way of laying foundations), must commence within 26 weeks after settlement of the purchase. However, there is no limit on the time of construction.
  • You must be an Australian citizen, Australian resident or an Australian-owned body.

The above information has been simplified to make it easier to understand. There are however, firm requirements that must be met to be eligible for each benefit so if you would like to know more please contact the Office of State Revenue http://www.osr.nsw.gov.au/contact or I would love to hear from you.

 
Helpful Link

http://www.osr.nsw.gov.au/grants

Property Grants available in 2015

2015 is off to a strong start in the property market!
Sales are up and interest rates are at a 60 year low. It may be the perfect time for you to start your property portfolio and buy an investment property, or even build your first home.

There are a number of grants that are available in 2015 which you may be eligible for to help you on your way. If you are a First Home Buyer looking to buy a brand new home, or a vacant block of land to build your first home, you can apply for free stamp duty, and a $15,000 Grant. Whether you are upgrading, downsizing or an investor, for people buying a brand new home, or a vacant block of land on which a new home will be built, there is a $5000 New Home Grant available.

First Home – New Home scheme – Exemption or Concession from Stamp Duty
First Home Buyers purchasing a brand new home under $550,000 can apply for an exemption from Stamp Duty, or if the purchase price is between $550,000 and $650,000 you can apply for a discount on your Stamp Duty.
If you are buying a vacant block of residential land to build your first home for under $350,000 you can apply for an exemption from Stamp Duty, or if the purchase price is between $350,000 and $450,000 you can apply for a discount on your Stamp Duty.

First Home Owner Grant (New Homes) scheme – $15,000 Grant
First Home Buyers purchasing a brand new home, or vacant block of residential land to build your first home for under $750,000 can apply for the $15,000 First Home Owner Grant (New Homes). This will reduce to $10,000 on 1 January 2016.

To be eligible for the “First Home – New Home Scheme”, or “First Home Owner Grant” above:

  • at least one buyer must be an Australian citizen or permanent resident
  • the agreement must be for the purchase of the whole property
  • you must be a natural person (not a company or trust)
  • you must be over 18
  • the home is a brand new home
  • you or your partner have not previously owned property in any form in Australia
  • at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.

New Home Grant scheme – $5,000 Grant
If you are purchasing a brand new home (including “off the plan”), or vacant land on which a new home will be built then you can apply for the $5,000 New Home Grant. The Grant is paid by reducing your Stamp Duty costs, and if there is any money left over, then this would be paid to you by cheque.

You can apply for the Grant more than once, but it is limited to once per financial year. You can be a natural person, a company or trustee of a trust, and the grant is available to investors as well as owner occupiers. To be eligible for the New Home Grant:

  • Applications must be made within 3 months of the date of exchange of Contracts.
  • The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
  • For vacant land, construction of the home (by way of laying foundations), must commence within 26 weeks after settlement of the purchase. However, there is no limit on the time of construction.
  • You must be an Australian citizen, Australian resident or an Australian-owned body.

The above information has been simplified to make it easier to understand. There are however, firm requirements that must be met to be eligible for each benefit so if you would like to know more please contact the Office of State Revenue or I would love to hear from you.

Helpful Link
http://www.osr.nsw.gov.au/grants

First Home Saver Accounts Abolished

First Home Owner Saver Accounts have been abolished by the Federal Government in the new budget handed down this week.

Federal Treasurer Mr Joe Hockey MP has said that the scheme “had limited effectiveness in improving housing affordability due to the low take up of the accounts…”

The announcement is effective immediately and any new accounts opened after 13 May 2014 will not be eligible for the Federal Government co-contribution, or any tax or social security concessions.

This is expected to result in savings of around $125 M over the next four years.

No other benefits for First Home Buyers were announced in the budget.

First Home Saver Accounts

If you are saving up to buy your first home, a First Home Saver Account might be just the thing you need to give your savings a boost to help you reach your dream of owning your own home faster!


A First Home Saver Account is a special account where the government will increase your savings by adding 17% of your contributions for the financial year, up to a capped amount. For the 2013-14 year this cap is $6,000 making t
he maximum amount that the government will contribute as $1,020.


There are lots of great benefits of these accounts

  • Free money contributed by the government
  • Make as many or as little deposits as you like each year, up to a maximum amount that the account balance can reach. This cap is $90,000 for 2013-14.
  • The money added by the government is paid in a lump sum once a year, usually around December.
  • You do not need to close the account when you reach the cap, however you can’t make further deposits and so the government contributions cease.
  • Other people such as mum and dad can also make deposits in your account
  • Earn interest on all the money in your account – that’s the money you, your parents and the government put in
  • You don’t have to report the interest on your tax return; the account provider pays the tax on these accounts, but make sure you ask if they are passing this cost onto you.
  • The money in this account is not included in income and assets tests for various government benefits such as family tax benefit
  • You don’t pay any tax on the money when you withdraw it.
  • A first home saver is an individual account, but you can buy a house with a partner whether or not they have a first home saver account.
  • You have a 14-day cooling-off period when you first open your account

There are also some not so great parts about the account which you will need to consider

  • You can’t salary sacrifice payments into your first home saver account.
  • The money that you save can only be used to pay the deposit on a home or land or other costs sustained when you buy or build your first home.
  • You have to keep the money in the account for a minimum period of time currently 4 years.
  • If you lose your eligibility to hold an account, do not buy a house or change your mind you cannot simply close your account, withdraw the money and spend it. The money must be transferred into a superannuation account, unless you are over 60.
  • You can’t make partial withdrawals.
  • You can’t take money out of a first home saver account even if you are experiencing financial hardship.

You need to have contributed at least $1,000 per year to your account in at least four financial years – the four-year rule. You need to be aware that you cannot access this money until you buy or build your first home, but if you are saving for that event then 17% government contributions is a fantastic investment.

Sound good? Wondering how you get one? Well to receive the benefits you must meet the following requirements:-

  • You must be aged 18 to 65 years old when you open the account
  • You must not have owned a house in Australia or Norfolk Island
  • You must be an Australian resident.
  • You must contribute at least $1,000 in four or more financial years
  • You must use your account funds to buy or build a home you will live in for at least six months.
  • You must withdraw all your savings before settling the purchase contract or completing the construction

First Home Saver Accounts were first offered on 1 October 2008, and now in 2014 many financial institutions are no longer offering these accounts. This may be because people are concerned about how locked in their money is, or it may be because they are not aware that the accounts exist. First Home Saver Accounts have fairly strict rules and so won’t be right for everybody, and not all first home saver accounts are the same, so as always before you choose an account, you should read the product disclosure statement provided by the financial institution.

Here is a list of Financial Institutions currently providing First Home Saver Accounts:-

  • AMP Bank Limited – ABN 15 081 596 009
  • Credit Union SA Ltd – ABN 36 087 651 232
  • Hume Building Society Ltd – ABN 85 051 868 556
  • Hunter United Employees’ Credit Union Limited – ABN 68 087 650 182
  • IMB Ltd – ABN 92 087 651 974
  • Members Equity Bank Pty Limited – ABN 56 070 887 679
  • Police Financial Services Limited – ABN 33 087 651 661
  • Railways Credit Union Limited – ABN 91 087 651 090
  • Teachers Mutual Bank Limited – ABN 30 087 650 459
  • The Police Department Employees’ Credit Union Limited – ABN 95 087 650 799
  • Victoria Teachers Limited – ABN 44 087 651 769
  • Wyong Council Credit Union Ltd – ABN 29 087 650 897
  • The Trust Company (Superannuation) Limited – ABN 49 006 421 638

When you buy or build your first home, you can withdraw your saving, close your account, and you will be that much closer to paying your mortgage back and owning your home debt free.

I hope that you have found this information helpful. If you wish to find out more about First Home Saver Accounts, please look at the following links, or contact your financial adviser to discuss the best plan for your circumstances. Best of luck with your saving goals.


http://www.ato.gov.au/firsthomesaver
http://www.homesaver.treasury.gov.au/content/default.asp
https://www.moneysmart.gov.au/managing-your-money/banking/savings-accounts/first-home-saver-accounts
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/first-home-saver-calculatorPage Content
http://www.hunterunited.com.au/savings-savings-accounts.html