{"id":5166,"date":"2022-10-05T11:49:22","date_gmt":"2022-10-05T01:49:22","guid":{"rendered":"http:\/\/financialplus.com.au\/\/?p=5166"},"modified":"2022-10-05T13:26:07","modified_gmt":"2022-10-05T03:26:07","slug":"how-to-escape-renting-and-get-into-the-property-market","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/how-to-escape-renting-and-get-into-the-property-market\/","title":{"rendered":"How to escape renting and get into the property market"},"content":{"rendered":"
Dwindling rental supplies<\/a>\u00a0in\u00a0many parts of the country<\/a>\u00a0and soaring rental prices have many tenants looking for an escape.<\/p>\n Terms like \u201chousing crisis\u201d are being bandied about, and in many ways, homeownership has never looked more enticing.<\/p>\n The government has brought forward the regional first home buyer guarantee by three months to October 1, meaning regional Australians will soon have additional assistance to buy their first home.<\/p>\n But that doesn\u2019t mean city slickers can\u2019t get in on the action, too.<\/p>\n There are many government schemes designed to help you get into the market \u2013 all of which can be used simultaneously, meaning big savings for you!<\/p>\n The federal government offers a bunch of low-deposit, no lenders mortgage insurance (LMI) schemes through the\u00a0NHFIC<\/a>, which can fast-track your home buying process by\u00a04 to 4.5 years on average<\/a>, because you don\u2019t have to save the standard 20% deposit.<\/p>\n Better yet, not paying LMI can save you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.<\/p>\n 1.\u00a0First home guarantee<\/a>: helps up to 35,000 eligible first home buyer applicants this financial year purchase their first home with as little as a 5% deposit.<\/p>\n 2.\u00a0Regional first home buyer guarantee<\/a>: supports eligible regional Australians to purchase their first home with a deposit of 5%, commencing on 1 October 2022.<\/p>\n 3.\u00a0Family home guarantee<\/a>: assists eligible single parents to buy a home with a low 2% deposit.<\/p>\n Note that price caps apply to eligible properties and vary according to the application year and property location.<\/p>\n Stamp duty: two words that send a shiver down the spine of even the most seasoned property investor.<\/p>\n Fortunately for first home buyers, all state governments, except South Australia, have stamp duty concessions available for eligible applicants.<\/p>\n The Victorian\u00a0first home buyer duty exemption, concession or reduction<\/a>\u00a0(for properties up to $750,000), and the New South Wales (NSW)\u00a0first home buyer assistance scheme<\/a>\u00a0(for properties up to $800,000), help reduce or eliminate stamp duty expenses.<\/p>\n Queensland\u2019s\u00a0first home concession<\/a>\u00a0applies to eligible first home buyers purchasing a property valued under $550,000. Non-first home buyers may be eligible for the\u00a0home concession<\/a>.<\/p>\n Western Australia\u2019s (WA) first home owner grant recipients can also apply for\u00a0first home owner duty concession<\/a>\u00a0for eligible properties.<\/p>\n Tasmanian eligible first home buyers can apply for the\u00a0established homes duty concession<\/a>\u00a0to receive a 50% discount on stamp duty for homes valued at $600,000 or less.<\/p>\n Northern Territory (NT)\u00a0stamp duty concessions<\/a>\u00a0are available for eligible applicants buying house and land packages.<\/p>\n The Australian Capital Territory\u2019s (ACT)\u00a0home buyer income threshold scheme<\/a>\u00a0assists eligible parties to avoid or reduce stamp duty, depending on their income.<\/p>\n Most state governments (except the ACT) offer first home owner grants (FHOG) to help you achieve homeownership.<\/p>\n Victoria\u2019s\u00a0FHOG<\/a>\u00a0offers $10,000 towards the purchase of a new home valued at $750,000 and under. As does the NSW\u00a0FHOG<\/a>.<\/p>\n WA\u2019s\u00a0FHOG<\/a>\u00a0also offers $10,000 for new homes, with property value thresholds dependent upon location. The NT\u00a0FHOG<\/a>\u00a0also offers $10,000, but with the added bonus of no income or property value thresholds!<\/p>\n Queensland\u2019s\u00a0FHOG<\/a>\u00a0of $15,000 is available for eligible first home buyers purchasing a new home valued below $750,000. SA\u2019s\u00a0FHOG<\/a>\u00a0offers the same, but for property valued at $575,000 and below.<\/p>\nThe recent decline in rental properties has caused many to feel uncertain about their housing situation. Here\u2019s how you can leave renting in the dust and make homeownership a reality.<\/strong><\/p>\n
Low deposit, no LMI schemes (federal government)<\/h3>\n
Stamp duty concessions (state government)<\/h3>\n
First home buyer grants (state government)<\/h3>\n