More help for first home buyers

With the change of government, we’ve yet again seen an adjustment in the support on offer for first home buyers looking to enter the market. The stamp duty concessions previously brought in have been amended, with the new NSW government taking a slightly different approach.

Under the changes, first home buyers can now skip paying stamp duty on properties purchased in NSW depending on the purchase price. For properties valued between $800,0001 and $1m, a sliding scale will operate with properties under $800,000 in value being exempt, saving buyers up to $31,090. The changes have been made to the the First Home Buyers Assistance Scheme and replace the former Coalition government’s first home buyer land tax option.

There is more good news for first home buyers with the federal government recently passing a policy designed to make it easier for people to access the 50,000 places available each financial year under the Home Guarantee Scheme. The changes which came into effect on July 1 should give first home buyers more of a chance to enter the market.

What is the Home Guarantee Scheme?

The Home Guarantee Scheme consists of three parts; the First Home Guarantee (35,000 places), the Regional First Home Guarantee (10,000 places) and the Family Home Guarantee (5,000 places). For first home buyers looking to call the Sutherland Shire home, the First Home Guarantee and Family Home Guarantee are worth looking into to see if you are eligible to apply.

What changes came in on July 1?

1. Whilst overall the number of places available stayed the same, the new reforms allow more people to access the 15% loan guarantee and to obtain a loan with only a 5% deposit without having to pay mortgage insurance.
2. The changes also allow friends, siblings and other family members to jointly apply for the First Home Guarantee and the Regional First Home Guarantee. Those who haven’t owned a home in Australia in the last ten years are also eligible to apply.
3. Families, where the children are under the care of a single legal guardian such as an aunt, uncle or grandparent can now apply for the Family Home Guarantee.
4. Permanent residents are now also able to apply for any one of the three parts of the scheme, making it the first time ever it has been available to non-Australian citizens.

The changes aim to provide more avenues to home ownership for those looking to enter the market. Purchasing your first home is a huge deal especially when working out what features are important and which property to purchase.

When looking to purchase your first home it is advisable to look for a ‘quality property’, especially for long term capital growth and future resale potential.

Quality is more than just buying in a good suburb and an ideal location within that suburb, it’s also about looking at key features that will continue to add value to your property over time. Generally speaking, a quality property will have a better chance of large price increases over time and is more likely to hold its value during market fluctuations.

Key features to look for when purchasing your first home

Close proximity to shops, schools and transport
A property that is in an ideal location close to schools, shops and transport facilities will always be looked upon more favourably to a property where accessibility is more difficult.

Ideal aspect
A north facing aspect is the most sought-after positioning particularly when looking at larger dwellings like townhouses and houses that have a backyard or outdoor area.

Natural light and functionality
Properties that have ample natural light and a functional floorplan across both living and bedroom areas will appeal more to buyers than a darker property with little natural light and closed in areas.

Privacy and level of noise
When looking at key features it is good to take note of how private the property in question is and whether or not it is on a quiet street. A good tip to remember is to look at the outlook from various rooms, both at seated and standing height, as you might be surprised at how the perspective changes.

Extra living spaces and outdoor areas
With more and more people adopting a work from home lifestyle, extra living spaces are becoming increasingly popular. Outdoor areas also add appeal and are looked upon favourably.

For those looking at buying their first property the aim is to buy the best ‘quality property’ you can afford. Keeping an eye out for fundamental features such as the above will help you to purchase one that is more likely to retain and/or grow its value over time.

You can find more information on the Home Guarantee Scheme by visiting https://www.nhfic.gov.au/support-buy-home