The recent decline in rental properties has a lot of us worried about the future of our housing situation. The solution? Quit renting. Here’s how you can leave renting in the dust and make homeownership a reality.
Dwindling rental supplies in many parts of the country and climbing rental prices have many tenants looking for an escape.
Terms like “housing crisis” are being bandied about, and in many ways, homeownership has never looked better.
The government has brought forward the regional first home buyer guarantee by three months to October 1, meaning regional Australians will soon have extra assistance to buy their first home.
But that doesn’t mean city folk can’t get in on one of the first home buyer schemes.
There are many government schemes designed to help you get into the market – all of which can be used simultaneously, meaning big savings for you!
Low deposit, no LMI schemes (federal government)
One of the best ways to stop renting and buying a home is through government schemes.
The federal government offers a bunch of low-deposit, no lenders mortgage insurance (LMI) schemes through the NHFIC, which can fast-track your home buying process by 4 to 4.5 years on average because you don’t have to save the standard 20% deposit.
Better yet, not paying LMI can save you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.
1. First home guarantee: helps up to 35,000 eligible first home buyer applicants this financial year purchase their first home with as little as a 5% deposit.
2. Regional first home buyer guarantee: supports eligible regional Australians to purchase their first home with a deposit of 5%, commencing on 1 October 2022.
3. Family home guarantee: assists eligible single parents to buy a home with a low 2% deposit.
Note that price caps apply to eligible properties and vary according to the application year and property location.
Stamp duty concessions (state government)
Stamp duty: two words that will scare the motivation out of even the most seasoned property investor.
Fortunately for first home buyers, all state governments, except South Australia, have stamp duty concessions available for eligible applicants.
Stamp duty in Victoria
The Victorian first home buyer duty exemption, concession or reduction (for properties up to $750,000), and the New South Wales (NSW) first home buyer assistance scheme (for properties up to $800,000), help reduce or eliminate stamp duty expenses.
Stamp duty in Queensland
Queensland’s first home concession applies to eligible first home buyers purchasing a property valued under $550,000. Non-first home buyers may be eligible for the home concession.
Stamp duty in Western Australia
Western Australia’s (WA) first home owner grant recipients can also apply for first home owner duty concession for eligible properties.
Stamp duty in Tasmania
Tasmanian eligible first home buyers can apply for the established homes duty concession to receive a 50% discount on stamp duty for homes valued at $600,000 or less.
Stamp duty in the Northern Territory
Northern Territory (NT) stamp duty concessions are available for eligible applicants buying house and land packages.
Stamp duty in the Australian Capital Territory
The Australian Capital Territory’s (ACT) home buyer income threshold scheme assists eligible parties to avoid or reduce stamp duty, depending on their income.
First home buyer grants (state government)
Most state governments (except the ACT) offer first home owner grants (FHOG) to help you achieve homeownership.
Victoria’s FHOG offers $10,000 towards the purchase of a new home valued at $750,000 and under. As does the NSW FHOG.
WA’s FHOG also offers $10,000 for new homes, with property value thresholds dependent upon location. The NT FHOG also offers $10,000, but with the added bonus of no income or property value thresholds!
Queensland’s FHOG of $15,000 is available for eligible first home buyers purchasing a new home valued below $750,000. SA’s FHOG offers the same, but for property valued at $575,000 and below.
Tasmania’s FHOG packs a wallop, offering up to $30,000 for eligible applicants.
Talk to Soho Home Loans
Really want to stop renting and buy a home? Property prices might be on the decline for a little while yet, but don’t let that deter you from acting now: it’s a buyer’s market.
It’s also important to note that spots for these schemes, such as the federal government’s first home guarantee, are limited and get snapped up quickly.
So if you’d like to make the move from renter to home owner, get in touch with Soho Home Loans today and we’ll help you work out your borrowing options, factoring in what schemes you may be eligible for.
Looking for your dream home?
If you want to stop renting and buy a home, you gotta start looking first.
Soho can help. Browse our search page to check out some amazing listings available right now. But don’t just stop there, download our app to get the full Soho experience. Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for.
