Federal Budget 2017 – what does this mean to me?
By | 1st Jun 17

Housing and affordability was a huge topic for the 2017/2018 federal budget. With a lot of commentary going around about the current economic and housing market it’s no surprise that there were many changes which were announced recently. If you’re looking to buy or are a first home buyer navigating your home purchase we have some key takes out you might find useful

First home Buyer Super Saver Scheme – this scheme was announced to try and help first home buyers in the current market. The new super saver scheme will allow first home buyers to allocated $15,000 to a maximum of $30,000 into their superannuation. The logic behind this is to allow first home buyers the opportunity to draw this money out for a home deposit. First home buyers will be able to save their funds at a discounted tax rate by making additional contributions into their super.

The incentive for retirees to downsize – With land values growing, the demand for homes can produce tightly held markets. The incentive is to give Australians over the age of 65 the ability to put up to $300,000 each into their superannuation from the proceeds of their house sale.

Foreign investors can only purchase up to 50% of a development – the new budget has mandated that developers can only sell 50% of their developments to foreign investors. The thinking behind this is to free up more opportunities for more first home buyers to buy into new estates or apartments.

Vacancy Tax – For those not ready to buy, and are struggling in a tight rental market, foreign investors who keep their property vacant for more than six months will be taxed. The tax is intended to get more homes and apartments on the rental market.

If you would like more guidance in regards to your property purchase, get in touch today with one of our property consultants. PH 1300 239 901