What the budget means for first home buyers

The budget proposals will enable first home buyers to use voluntary contributions from their superannuation to save for a house deposit. Contributions will be capped at $30,000 in total, with both members of a couple able to embrace the scheme.

The budget proposals will enable first home buyers to use voluntary contributions from their superannuation to save for a house deposit. Contributions will be capped at $30,000 in total, with both members of a couple able to embrace the scheme.

The federal budget proposals left some bearing the brunt including foreign investors, but there were some highlights for first home buyers.

The new proposals will enable first home buyers to use voluntary contributions from their superannuation to save for a house deposit.

Contributions will be capped at $30,000 in total, with both members of a couple able to embrace the initiative.

One millennial couple - Liz Smith and Erin Blacklock are currently house minding and intermittently living in a van to save for a house in Sydney.

They said the new scheme was a step in the right direction for first home buyers.

“I think for us it could help significantly at this stage. Even if it’s a small amount, if me and Erin combined contributions that could help us save for a deposit and help us get into the property market sooner rather than later,” Miss Smith said.

The Real Estate Institute of Australia also said they support the budget proposals for first home buyers.

“With home ownership in Australia declining and first home buyers finding it increasingly difficult to enter the housing market, allowing first home buyers to build deposits with superannuation through voluntary contributions is welcome.

“While REIA has advocated for a more aggressive approach to bridging the deposit gap by allowing first homebuyers access to existing balances in superannuation accounts, the Government’s initiative will reduce the time taken to save for a deposit by about 25 per cent,” Malcolm Gunning, president of the Real Estate Institute of Australia said.

However, according to Mr Gunning, super contributions may not make a big difference for those looking to buy in inner city areas.

“With the high cost of stamp duty in Sydney and Melbourne, for first home buyers to have a $30,000 opportunity through super will assist, but because the prices are high, it’s still quite a jump. 

”The budget’s proposals for first home buyers will help outer city areas and regional Australia, that’s where the benefit will be felt. We also think it’s positive they’re challenging the states to address the real issue with stamp duty,” Mr Gunning said.

Overall, the REIA said they welcome the budget infrastructure proposals, but have concerns about the message to foreign investors.

”We welcome infrastructure, such as the rail links they’re proposing and an infrastructure spin in VIC. It will introduce jobs in more affordable locations.

“But there’s a little concern about the message to foreign investors who have been big drivers of the construction industry and economy,” Mr Gunning said.

The story The budget for first home buyers first appeared on St George & Sutherland Shire Leader.

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