What the 2021 Federal Budget Means for You
Owning a home is a lifelong dream for Australians, and for many, realising that dream may just have gotten a whole lot closer with the announcement of the 2021 Federal Budget earlier last week.
The recently unveiled 2021 Federal Budget is expected to give thousands of Aussies the push they need to get onto the residential property ladder. Even though the country has experienced its first recession in a decade, Australia’s economic recovery post-covid has been staggering.
And the extension and expansion of the government’s stimulus packages are forecasted to benefit many more buyers yet.
As we know, the federal HomeBuilder stimulus announced mid-last year has been hugely popular – after all, $25,000 goes a long way towards a new build or a substantial home renovation! This program has delivered the stimulus that the housing sector needed and has helped to keep the Australian property market remarkably buoyant in a time of global uncertainty.
So, what are the main take-aways from the new Federal Budget?
First home buyers are now at record highs, and under the new measures, they’ll be allowed to access up to $50,000 of their concessional and non-concessional superannuation contributions for a first home deposit. This is great news for the property industry!
The government has allocated another 10,000 places for the First Home Loan Deposit Scheme, which allows eligible buyers to purchase a property with a deposit as low as 5%.
Many single custodian parents are set to benefit from the announcement of the Family Home Guarantee which will assist eligible single parents to purchase a property with a deposit as low as 2%.
Despite criticism from some quarters that supply of these grants is far exceeded by demand, these initiatives are designed to provide support and assistance where it’s most needed, allowing many single parents the security of their own home.
The new budget also has some good news for older people: Australians who are nearing retirement will be encouraged to sell their family homes and downsize, freeing up these bigger homes for younger families.
Under the new scheme, those aged over 60 will be able to make a one-time contribution of $300,000 per person (or $600,000 per couple) to their superannuation when they sell their family home.
With the median house price on the increase, this scheme will be a great way to provide younger families with bigger yet affordable housing options.
How will the Budget affect property in Melbourne’s North?
The new Federal Budget will help many first home buyers in Melbourne get a leg in the door of the property market. With government stimulus packages at record highs and interest rates historically low, there’s never been a better time to invest!
And for many of our single custodian parents, the news is also great! With a deposit of only 2%, the possibility of owning your own home has never been closer.
For our older community, downsizing is about to become a whole lot more attractive, and this will free up more of the larger, affordable homes in Melbourne for growing families.
In short, the housing market in Melbourne is forecasted to remain strong and resilient for the foreseeable future, even more so now with the introduction of these initiatives.
For more information on how the 2021 Federal Budget might affect you and how you can reap the rewards, please feel free to call your local Love & Co office today.
Image source: Yahoo Finance.
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