The Australian Government has recently announced the 2022-2023 edition of the Federal Budget, which includes the expansion of their housing scheme. This new-look plan sees first-home buyers, single parents, and regional Australians benefit from additional funding, allowing them to purchase property with a smaller deposit.
How does it work?
The revitalised scheme will see 35,000 places going to first-home buyers in the 2022-2023 financial year, up from 20,000 places this year.
An additional 10,000 places are available per year for regional Australians, provided they haven’t owned a property within the last 5 years.
Both regional Australians and first-home buyers can secure a home loan with just a 5% deposit, with the Government supporting up to 15% of the total deposit, which prevents the need for lenders mortgage insurance.
Thanks to the Family Home Guarantee, single parents seeking to buy into the property market can do so with a deposit of just 2%. This covers 5,000 places every year, up from 10,000 over a four-year period.
Are you eligible?
Individual applicants with no more than $125,000 of taxable income for the previous financial year, or couples with an income under $200,000 are eligible for the new First Home Guarantee – previously called the First Home Loan Deposit Scheme. This income cap applies to the Family Home Guarantee as well.
The Regional Home Guarantee is eligible for any permanent resident, whereas all other schemes are limited to Australian Citizens only.
Anyone looking to receive these benefits must be purchasing a property to reside in, which means the home cannot be used as an investment.
Does this opportunity apply to you?
Affordable apartments will be hot property now that the barrier to purchase is significantly reduced for first-home buyers, single parents, and regional Australians.
Initial investment properties are a no-deal under this scheme, however, an apartment at The Groves in Attadale is seen as an excellent investment for the future. The established suburb has seen an annual growth in property valuation of almost 20%.
To find out more about the remaining apartments and how you can invest in The Groves, get in touch with our team today.