Are you looking at buying your first home in Queensland? Congratulations! The journey to owning your first home is an exciting one, and you’ll be glad to know that there are a range of initiatives and incentives available to help make your dream a reality. We at Solace Financial have created this guide and can be your support throughout each step. From the First Home Super Saver Scheme to the First Home Owner Grant, as well as Government Guarantee loans and stamp duty concessions, there are plenty of options to explore. Let’s dive into the details and discover the fantastic opportunities awaiting you in the Sunshine State!
First Home Super Saver Scheme:
One of the fantastic options available to first home buyers in Queensland is the First Home Super Saver (FHSS) Scheme. This scheme allows you to save for your first home within your superannuation fund, taking advantage of the tax benefits associated with super. By making additional voluntary contributions, you can accumulate savings faster, thanks to the lower tax rate applied to your super contributions.
Under the FHSS Scheme, you can contribute up to $15,000 per year, with a maximum total contribution of $50,000. These contributions, along with associated earnings, can be withdrawn when you’re ready to purchase your first home. This initiative enables you to boost your savings while potentially reducing the amount of tax you pay.
First Home Owner Grant:
The Queensland Government offers a generous First Home Owner Grant (FHOG) to eligible first home buyers. If you are building a new home or buying a newly constructed property, you may be eligible for a grant of up to $15,000. This grant can go a long way towards helping with upfront costs, such as your deposit or other expenses related to the purchase of your new home.
Additionally, if you are purchasing a property in regional areas you may be eligible for a further $5,000 boost to this grant.
Government Guarantee Loans:
Getting a home loan can sometimes be a daunting task for first-home buyers, especially when it comes to saving for a deposit. However, the Government Guarantee Loan program is here to help. Under this scheme, the Australian Government acts as a guarantor for eligible first-home buyers who have a deposit of less than 20% of the property’s value if the property value is up to $700,000 (In QLD capital cities/ regional states). This means you could possibly be eligible to purchase a home with as little as 5% deposit.
By reducing the amount of deposit required, this initiative makes it easier for first-home buyers to enter the property market. It also allows you to avoid the added cost of lenders’ mortgage insurance (LMI), which is typically required when borrowing more than 80% of a property’s value.
Stamp Duty Concession:
Another fantastic opportunity for first-home buyers in Queensland is the stamp duty concession. Stamp duty is a tax imposed on property purchases, and it can often be a significant financial burden. However, to make the process more affordable for first-home buyers, the Queensland Government offers a stamp duty concession.
Under this concession, eligible first-home buyers purchasing a property under $550,000 will receive a full exemption from stamp duty, if the property is valued at over $550,000 depending on the value of the property, you may be eligible for a part reduction in stamp duty. This can result in significant savings, allowing you to allocate more of your funds towards your deposit or other essential aspects of homeownership.
Embrace the Opportunities:
As a first-home buyer in Queensland, you have access to an array of initiatives and incentives that can help turn your dream of homeownership into a reality. The First Home Super Saver Scheme offers a tax-efficient way to save, while the First Home Owner Grant provides financial assistance towards your purchase. The Government Guarantee Loan program reduces the deposit requirements, and the stamp duty concession can save you a substantial amount of money.
With these opportunities at your disposal, it’s time to embrace the excitement and start exploring your options
If you would like to discuss today the opportunities that are available for you and how we can help you get into your first home, please use the below link to book in your consultation.
By Ross Pocock
