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More money from July for first home buyers


More money from July for first home buyers

It’s all in the fine detail when it comes to what first home buyers are entitled to. The key is to do your homework.

Last Tuesday’s Budget announcements ramp up the Federal Government’s push to get more buyers into their first home but behind the grants is a lot of fine detail.

In short, the Morrison Government is expanding the Home Guarantee Scheme, introducing a Regional Home Guarantee and doubling the number of places under the Family Home Guarantee. That is all in addition to the increase in the drawdown of superannuation funds released under the First Home Super Saver Scheme.

There is complexity in the detail behind each scheme, which first home buyer specialist and owner of Troy Sussman said needs to be understood before buyer’s step into the market. For example, he said with the First Home Guarantee Scheme, each local government area has its own price cap range, which means a buyer is limited to what they can spend in the area they want to buy into.

The trick is for a buyer to know how to make these grants work for them. “You can use multiple grants,” Mr Sussman said. “There is a whole lot more out there in addition to what was announced in the Budget.”

Buyers also need to review their expectations. “I play the devil’s advocate and say, ‘I know you want xyz suburb with this, this and this but we should look at abc suburb where you can get in at this price and which has far more growth parameters in it and for more options for you.”

As fixed-price contracts become rare, Mr Sussman said he warns his clients to ensure they are working with the right developer and builder to ensure they understand what they are getting for their money.

Buying an established home or apartment however limits the purchase grants available to buyers. “First home buyers are better off buying a new property because they get far more grants,” Mr Sussman said.

“It’s important that these guys don’t fear that there are no properties on the Coast because when you speak with the right people there are opportunities out there,” he added.

Mr Sussman offered a tip for renters looking to buy. If they are renting for more than six months through a real estate agency and have their name on the lease, some banks will look at the rent as savings.


Budget 2002 announcements:

  • Expansion from 10,000 to 35,000 places a year under the First Home Guarantee (previously known as the First Home Loan Deposit Scheme) for first home buyers buying a new or existing home, with a deposit of 5 per cent, from July 1.
  • Increase to 5000 places a year for the Family Home Guarantee for single parents with dependants to buy a first home or re-enter the housing market, with a deposit of 2 per cent, from July 1 to June 30, 2025.
  • 10,000 places a year under a new Regional Home Guarantee to purchase or construct a new home in regional areas, from October 1 to June 30, 2025.

July 1 superannuation change:

  • Increase from $30,000 to $50,000 funds released under the First Home Super Saver Scheme.


Tracey Johnstone has worked as a Journalist for over 15 years. She started as a sailing writer and working on international events both in Australia and overseas. For several years Tracey was a feature writer for a national Seniors newspaper before bringing her experience in buying, selling building and renovating Coast property to MWP in 2019.

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