Heads-up on house help

Support for first home buyers is at hand – but it differs between states writes Tim McIntyre

FEDERAL help for first home buyers was announced in the May Federal Budget, but for the most part, states and territories handle any grants or assistance.

A Mortgage Choice study found 57 per cent of 1053 first time buyers surveyed believed benefits were insufficient. Just 27 per cent believed them adequate and 16 per cent did not know what grants were available.

The removal of stamp duty was top of the wish list for 47 per cent, while 36 per cent would prefer a grant for established (not newly built) properties. Just 15 per cent wanted to use superannuation to buy a home.

All up, 64 per cent would have bought sooner with the help of a government incentive, so here is a look at what is out there for first home buyers.

FEDERAL – FIRST HOME SUPER SAVER SCHEME

From July 1, this scheme will allow young Australians to salary sacrifice extra money into the low-tax environment of superannuation.

Contributions will be capped at $15,000 a year for a total of $30,000 and taxed at 15 per cent. Head of Essential Super Suzanne Pereira said young buyers could save a deposit faster with the scheme.

“The government estimates that under the scheme someone earning a salary of $50,000 that salary sacrificed an additional $5000 of their pre-tax salary to super each year, could withdraw up to $27,639 after six years,” Ms Pereira said.

“This is $7795 more than if they had simply saved the equivalent amount of their after tax salary via a standard deposit account.”

QUEENSLAND

Grant of $20,000 for new builds valued to $750,000, up until June 30, 2017; plus stamp duty exemptions for new homes up to the value of $504,999 and concessions for new homes up to the value of $550,000.

NEW SOUTH WALES

A $10,000 grant for new builds valued at up to $750,000; full stamp duty exemption from July 1, 2017 for all new and existing homes up to $650,000, and concessions in stamp duty premiums for homes up to $800,000.