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Changes to the Property Market for First Home Buyers

By Elke Blake

The 2017 Federal Budget has introduced the First Home Super Saver Scheme. This will allow first home buyers to contribute up to $15,000 per year ($30,000 in total) to their superannuation fund. The contributed funds together with the earnings can then be withdrawn to be used towards a house deposit. As voluntary superannuation contributions are taxed at concessional rates, the scheme creates incentives for first home buyers to save more. Contributions can be made from July 2017 and withdrawals allowed from July 2018.

Announcement that Stamp Duty will be abolished for all First Home Owners. The exemption is for ALL properties for a First Home Owner—it no longer has to be a brand new property. The maximum purchase price is $650,000 for a FULL exemption ($0 stamp duty), however there is a sliding scale discount up to a purchase price of $800,000. This will apply to contracts signed from 1st July 2017 onwards.

Stamp Duty is also being waived on Mortgage Insurance Premium and this can also save the buyer $1000+ dollars.

These announcements will make a purchase achievable a lot sooner than anticipated!

(courtesy – www.loanmarket.com.au)

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