Federal Election Results For Home Owners & Buyers

Liberal Party New Proposed Property Policy For Home Buyers

The decision to return the Liberal Party, led by Prime Minister Scott Morrison, to federal parliament could provide a much-needed boost for the Australian property market.

Sluggish sales and dipping investor confidence has weighed on the Australian property market over the last 12-months, with home buyers reluctant to enter the property market in a period of policy flux.

But with the election of the liberal party we now have more clarity on what the government plans to do for the next three years, here’s how it could affect you.

First Home Buyers

Prospects for first home buyers should be buoyed by the government’s decision to introduce the First Home Loan Deposit Scheme.

The policy, set to be introduced on January 1 next year, ‘will help first home buyers purchase a home faster’, according to the government.

How The New First Home Loan Deposit Scheme Works

Eligible first home buyers will be able to purchase a new home with a deposit as little as 5 per cent of the property value.

Under the scheme, new home buyers would be exempt from lenders mortgage insurance, which usually must be taken out by borrowers with low deposits.

The First Home Loan Deposit Scheme will be available to individuals earning less than $125,000 and couples less than $200,000, and it may be used in conjunction with the First Home Super Saver Scheme.

On top of that, first home buyers remain eligible for the first home buyers grant and any existing concessions offered by the state in which they reside, such as a reduction in stamp duty.

Property Investors

 The big one here is there will be no changes to negative gearing, which is great news for the 1.3 million Australian’s who own a property which is negatively geared.

In addition, the federal government has committed to no new taxes on houses for Australian residents.

It will also invest $1 billion in local infrastructure to unlock new housing supply and has said it will look at selling commonwealth land for housing development.

Sources:

* https://www.liberal.org.au/our-plan-support-first-home-buyers

* https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/

DISCLAIMER: The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Mortgage Choice recommends that you consider whether it is appropriate for your circumstances. Mortgage Choice recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.