When every dollar counts

After house hunting on and off for the past four years, Sarah Lewis, 28, a brand manager at a large multinational, and her partner, Alain Ducquet, 29 (pictured) have finally bought a place they can call their own.

“Initially we were outbid at all the auctions we attended while the market kept rising in front of our eyes. We managed to stretch ourselves, and have just bought a small house in Sylvania,” says Sarah.

“My partner is a builder so for us, given we’ve looked for so long, we wanted something we could improve on and stay in for a long time. We looked in many areas in Sydney and that was the only one we could afford for what we wanted.”

Sarah and Alain have diligently contributed to the First Home Super Saver scheme since it began, allowing them to save $30,000 each – the maximum currently allowed. This gave them a total of $60,000 towards their purchase.

“The stamp duty alone was over $60,000,” she says. “It was the only government initiative we’ve taken advantage of to enter the market. But every dollar counts so it was good to get the FHSS tax concessions.”

Sarah also points out it beats saving for a home deposit using a bank. “Interest rates are very low at the moment so it’s definitely much better than that.”

But many first home buyers are unaware of the scheme. “My dad works in finance and advised me to participate, but a lot of my friends who are in similar situations had no idea about it.”

However, it’s crucial people first check whether their super fund participates in the scheme before making any extra contributions. Two of her friends discovered they couldn’t withdraw their extra contributions after purchasing properties because their funds did not participate in the scheme.

“That left them with a funding gap. They thought they had access to their savings. Now they have that money stuck in super until they retire.”

With years of house hunting behind them, Sarah and Alain have much to look forward to. She’s also glad improvements made to the scheme helped them.

Previously you had to buy a home within 12 months of withdrawing your FHSS savings. Now you can request your money once you’ve bought a property.

“Imagine withdrawing the savings, and then having the clock ticking, feeling you have to buy something within 12 months. At least now you can request your withdrawal once you’ve signed the contract,” says Sarah.