State by state look at available first homebuyer assistance

FEDERAL help for first home buyers was announced in May’s Budget, but for the most part, States and Territories handle any grants or assistance.

A Mortgage Choice study found 57 per cent of more than 1000 first time buyers surveyed believed benefits were insufficient.

Just 27 per cent believed them adequate and 16 per cent did not know what grants were available.

The removal of stamp duty was top of the wish list for 47 per cent, while 36 per cent would prefer a grant for established (not newly built) properties. Just 15 per cent wanted to use superannuation to buy a home.

Federal — First Home Super Saver Scheme

From July 1, this scheme will allow young Australians to salary sacrifice extra money into the low-tax environment of superannuation. Contributions will be capped at $15,000 a year for a total of $30,000 and taxed at 15 per cent.

Stamp duty is one of the most expensive costs involved with buying property.

Head of Essential Super Suzanne Pereira said young buyers could save a deposit faster with the scheme.

“The government estimates that under the scheme someone earning a salary of $50,000 that salary sacrificed an additional $5000 of their pre-tax salary to super each year, could withdraw up to $27,639 after six years,” Ms Pereira said.

“This is $7,795 more than if they had simply saved the equivalent amount of their after-tax salary via a standard deposit account.”

State and Territory incentives for first home buyers

NSW

A $10,000 grant for new builds valued up to $750,000; stamp duty exemptions for new homes up to $550,000 in value and concessions for homes valued from $550,000 to $650,000.

VIC

A grant of $10,000 to $20,000 for new homes up to $750,000. Full stamp duty exemption from July 1, 2017 for new and established properties worth up to $600,000; plus concessions on $600,000 to $750,000 properties.

QLD

Grant of $20,000 for new builds valued to $750,000, up until June 30, 2017; plus stamp duty exemptions up to $500,000 and concessions up to $549,000.

WA

Grant of $10,000 for new builds or substantially renovated homes worth $750,000- $1 million. Full stamp duty exemption for homes up to $430,000 and concessions between $431,000 and $530,000.

SA

A $15,000 grant for new builds valued up to $575,000

 

TAS

A $20,000 grant for new builds of any value, reducing to $10,000 on July 1, 2017.

NT

A $26,000 grant for new builds of any value; plus up to $2000 to buy furniture and appliances. First-time buyers also get up to $23,000 off stamp duty for established homes worth up to $650,000.

ACT

A $10,000 grant for new builds or substantially renovated homes valued up to $750,000; plus stamp duty exemptions for homes up to $455,000 and concessions for those worth up to $585,000, depending on income levels.

 

by Tim McIntyre

originally published on dailytelegraph.com.au

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