The newly released Federal Budget for 2021/22 promises steps that will focus on getting more people back into the working environment in a bid to strengthen the country’s economy in the wake of the economic challenges of Covid-19. In addition to this, it also features a number of positive measures that will directly assist and support first-time buyers and property markets at large. But how will it affect those who are looking to sell their home in the coming year? We’ve broken down the key points of the Federal Budget that you should be aware of if you’re thinking about selling your home.
More people will be eligible to buy
One of the biggest takeaways from the new Federal Budget is the increase in support for those who are looking to buy a house, particularly if it’s their first time doing so. The measures in question are as follows:
- Family Home Guarantee. This scheme is open with 10,000 places over four years and is targeted at single parents with dependents who are looking to purchase an existing home. The new measure will allow them to do so with a deposit of as little as 2%, provided that they are citizens over the age of 18 years and have an annual taxable income of less than $125,000.
- First Home Super Saver Scheme. Initially introduced in the 2017/18 Federal Budget, this scheme allows participants to save money inside a superannuation fund for their first home. The key change of the new Federal Budget in this measure is the increase in the maximum number of voluntary contributions that can be released under the scheme from $30,000 to $50,000.
- The New Home Guarantee. Expanded for a second year with an additional 10,000 places, this scheme allows first time home buyers to purchase a newly built home with a deposit of as little as 5%. The scheme may also be used in conjunction with other government measures and grants, making it a positive move from the government on behalf of first-time buyers.
The Downsizer Scheme
One of the direct measures introduced to make it easier and more desirable for homeowners to sell their property is a new scheme which will allow those aged 65 or over to sell their family home and make a one-off $300,000 contribution to their superannuation, with the amount doubling to $600,000 for couples who choose to sell. This will more than likely lead to an increase in demand for people selling their homes to downsize and more opportunity for people looking to upsize into established family homes.
More opportunities for scheme to build homes
One of the possible negatives for those looking to sell their homes that was introduced in the Federal Budget is the increase in opportunity for those who are looking to build their own family home. Alongside the buying benefits listed previously in this article, the schemes mentioned also pertain to those looking to build (i.e., the Family Home Guarantee will also allow single parents to build a new home with a deposit of as little as 2%). Another measure introduced which could prove detrimental is the Homebuilder extension, which will see the construction commencement period extended from six months to 18 months for those who have already applied. Whilst this will be beneficial for the construction industry at large, it may result in fewer people turning to selling their home and upsizing or downsizing in the near future.