Saving for your first home? Whether you’re calculating how much to budget for, understanding costs and regulations or getting a better picture of the path to homeownership, this is an exciting first step towards your future! Across Victoria, there’s government support available that can help you move into your new home sooner, and with confidence.
Say goodbye to stamp duty
Stamp duty is usually one of the first things to understand for first home buyers. It can add thousands to your upfront costs before you’ve even got the keys. The good news? If you’re buying your first home in Victoria and it’s valued at $600,000 or less, you won’t have to pay stamp duty. Between $600,000 and $750,000, you still get a discount that tapers down as the price goes up – visit the State Revenue Office to find out more.
Financial support available
On top of stamp duty exemptions, eligible first home buyers can also access the First Home Owner Grant – a $10,000 payment to help you build a new home valued at $750,000 or less. Because it applies to never-occupied, newly constructed properties, it covers house and land packages like ours at Kala, meaning eligible buyers can stack it with the stamp duty saving to reduce costs, right when it’s needed most.
The smarter way to save
If you’re still saving for a new build, the First Home Super Saver Scheme is worth looking into. It lets you put extra voluntary contributions into your super fund, taxed at a lower rate than your regular pay, then withdraw them later to put towards your first home deposit. You can contribute $15,000 per year, with $50,000 the total amount you can withdraw! It won’t replace your regular savings plan, but it’s a smart way to get you there faster.
Small deposit, big wins
For first home buyers, saving for a deposit whilst paying rent can usually slow down the process, but the Australian Government’s Deposit Scheme addresses exactly that. Eligible first home buyers can purchase a property with just a 5% deposit, or as little as 2% for single parents and legal guardians. But the benefits don’t stop there. Recent changes to the scheme mean there’s no income caps and no waitlists, so it’s worth asking your broker what you qualify for.
Ownership made more achievable
The Australian Government Help to Buy Scheme is a new shared equity initiative. Under the scheme, the government contributes up to 30% for an existing home or 40% for a new build towards the purchase price in exchange for a matching share of ownership. Your deposit can also be as low as 2%, and you can buy back the government’s share over time or when it’s time to sell. It’s a newer scheme that might not suit everyone, but it’s worth considering as it helps bridge the gap between your deposit, what you can borrow and the price of a home to suit your needs.
Make the most of first home buyer assistance with Kala
There’s a lot to weigh up when buying your first home, but there is support available. From stamp duty exemptions to the First Home Owner Grant, there are several schemes that you can utilise, and that make a thriving and well-established community even more within reach.
Whether it’s 5-minutes to Lakeside Market Pakenham, Ryan Road Childcare & Swim School or Barn Events, everything you need is closer than you think at Kala. With the central green belt and wetlands on your doorstep, this is the kind of community that’s easy to picture calling home.
Want to discuss the government schemes in more detail? Contact us today.