WHITSUNDAY E-NEWS REAL ESTATE: 2nd week of May
Published on: May 18, 2021
Hi, Annette Neil from PRD Whitsunday.
This week I thought I'd give a little recap on the budget that was announced this week by the federal government. This will impact what is currently a very hot topic, housing supply and housing affordability.
As we know, prices across Australia are going through the roof at the moment.
The government has centered more of their focus on stimulus packages and announcements with this budget to much more on the supply side of things not so much the affordability side of things.
So when they look at supply, how can we get people to bring their properties to the market to allow there to be houses for first home buyers or families to purchase ?
The government has announced the downsizer super scheme, which has been in place since 2018.They are reducing the age from 65 down to 60. So that means that people that are nearing retirement or are retired can sell their principal place of residence and they can put $300,000 per person straight into their super fund as a voluntary contribution. So for couples, this means they could sell their home, which is probably where most of their wealth is. They can then put this into their super fund without being penalised, and it means that there's a property coming to market for a family to buy.
Another thing that's been announced is the family home guarantee. This one is targeted at 10 000 single-parent families. So families that have an income, they may not have a deposit saved up, may be able to take advantage of this family home guarantee. The government is helping these families get into purchasing a home with as little as two percent deposit. They are then guaranteeing the other 18% of the deposit, which means that it takes the lender's mortgage insurance out of the equation. You usually have to have 20% to get around that, but with the government guaranteeing and assisting, it will help those single-parent families get into the market.
Good things are coming there through in the budget, which will help a little bit with supply and entry. It will remain to be seen with affordability, but for now, if you need any more information on those two schemes.
Please do give e us a call at 07 4946 2000
