Federal Budget 2021-22: What it Means for Real Estate
One of the biggest pieces of news lately is the announcement of the Federal Budget 2021-2022. While there were a lot of initiatives announced, here’re the ones more relevant to the real estate industry.
Establish a Family Home Guarantee
Through this initiative, single-parent families will be able to purchase a home with a 2 per cent deposit. There will be 10,000 guarantees that will be available over the next four years. This scheme will help many single parents get their foot in the property door and make it easier to save for a home. With more people having an opportunity to become homeowners the better it is for the property market growth.
Expand the New Home Guarantee
In its first year, this scheme proved to be very popular, so the new budget includes additional 10,000 places for first home buyers seeking to build a new home or purchase a newly built home with a 5 per cent deposit. When this scheme was first implemented, many people got inspired to become homeowners, which in return contributed to the property demand the industry is currently experiencing.
Increase the First Home Super Save Scheme
The maximum amount of voluntary contributions that can be released under the First Home Super Saver Scheme will be lifted from $30,000 to $50,000. The government is trying to support as many Australians as possible to own their own home as part of their plan to secure Australia’s economic recovery. In addition, $124.7 million in funding will be pushed across Australia to build more homes for public housing.
Overall, it is great news that government recognises real estate’s importance in economic recovery, and as a result, introduces initiatives to stimulate the industry. No matter if you’re renting or you’re a property investor, there’s something in it you can benefit from.
If you’re looking to buy your first home, get in touch with our Coronis Finance team to speak to a mortgage broker.