Tuesday’s announcement of the federal 2021 budget contains help for single parents and first home buyers to get into Peth’s hot property market along with a 10.2million tax relief for low and middle income earners.
Sky-high iron ore prices, along with a far-lower-than-expected rate of unemployment, have meant that the budget position looks rosy compared to what was initially feared.
In years gone by there would be not much cause for celebrating a $161 billion budget deficit, but in this COVID-19 impacted world, this outcome is better than what was expected.
The biggest initiative that is aimed at property owners nearing retirement to downsize from the family home by extending access to a superannuation contribution scheme. This means for those aged over 60, you will be able to turbocharge up to $300,000 into your superannuation when you sell your family home. Before, only those aged 65 and over were able to access the scheme. Now, anyone aged 60 and over can access the scheme, and the work test has been scrapped – meaning you no longer have to prove you worked before accessing the concessions.
Economist Anne Flaherty said the change could be useful in addressing the problem of housing affordability as property prices surge. Using this initiative to encourage retirees to downsize means there will be more houses available for younger families to buy.
Introduced for single parents is a new scheme in assisting single parents to enter the housing market:
- Under the Family Home Guarantee scheme, a single parent will be able to purchase a dwelling with a two per cent deposit, with the Federal Government guaranteeing another 18 per cent of the value of the loan.
With only 10,000 places allocated for this scheme over four years, spots will be limited, and we expect that it will become increasingly popular as more single parents become aware of the scheme.
We also see the following existing schemes extended for first home buyers:
- The First Home Super Saver scheme, which allows first home buyers to both contribute to their super, and withdraw from it to fund a deposit, has been extended and the cap lifted from $30,000 to $50,000.
- The New Home Guarantee scheme, which allows first home buyers to build or buy a new home with just a five per cent deposit, will be extended to add another 10,000 places for singles and couples.
With the Perth property market coming from such a low base, there’s not been a better time since almost a decade ago to either enter the property market or acquire another investment property. Housing affordability in Perth is still the best across the country with low interest rates, abundant employment opportunities and steady population projections. It won’t take long for Perth property values catch up to the rest of Australia so act quickly and take advantage of any government schemes you may be eligible for.
Call the Sales Team @ Salt Property to see how we can help you achieve your property goals!