Home ownership is often one of the best ways to accumulate personal wealth. Mortgage repayments replace weekly rent and create an investment in the most important asset most of us will ever own, our home. However, it’s not always easy to join the home ownership club!
First home buyers, whether they be young adults or others seeking to escape the rental grind, face significant barriers that can keep them stuck in a rental cycle. Large deposits, increasing house prices, and government charges can combine to make the dream of home ownership seem elusive.
In its most recent budget, the State Government has moved to strengthen the supports available to first home buyers by introducing a stamp duty subsidy. This means that if you’re buying a new home, off the plan apartment, house and land package, or vacant land to build on, you could be eligible for a new subsidy that could save you up to $29,580 in government charges.
That’s great news!
The subsidy is available for purchase contracts entered into after 15 June 2023 and it means that no stamp duty will be payable by eligible buyers for homes with a purchase price of up to $650,000. Stamp duty will also not apply when eligible purchasers buy land with a purchase price of up to $400,000. The subsidies taper to nil at $700,000 for houses and $450,000 for land.
The new stamp duty subsidy combines with the existing first home buyer grant of $15,000 to boost the buying capacity of first home buyers by up to $44,580. Imagine what that could do to help you get into the home of your dreams!
The State Government has also strengthened measures to help eligible first home buyers who are having difficulty getting their deposit together. The government announced that HomeStart Finance will soon be offering loans with 2% deposit, with no mortgage lender’s insurance required. On a home costing $650,000 this will reduce the deposit from 20% or $130,000 to 2% or just $13,000, making it much easier to get a foot in the door of home ownership.
For all the details and the eligibility criteria, go to https://www.revenuesa.sa.gov.au/stampduty/first-home-buyer-relief.
If you’re thinking of buying a home, whether you’re a first home buyer or a seasoned home owner, call Ray White Unley / Colonel Light Gardens today, we’re deliberately different!