A Guide to First Home Buyer Incentives and Schemes

## Getting Started

The first step in your home-buying journey should be doing thorough research and setting clear goals. From my experience working with clients, I've found it's crucial to consider your stage of life, career trajectory, and whether you have a specific location in mind or are more flexible. This will help you decide between buying an owner-occupied home or an investment property.

While investment properties can offer tax benefits, it's important to note that most first home buyer schemes and grants require you to live in the property for a certain period.

Before approaching lenders, I always advise my clients to assess their savings and budget carefully. Factors like your income, the property's cost, and whether you're buying a new or established home will affect your eligibility for various schemes.

For those looking in expensive markets, I often suggest considering 'rentvesting' - renting where you want to live while owning property elsewhere - rather than focusing on first home buyer incentives.

## Available Incentives

### Federal Level Programs

The First Home Super Saver Scheme can be an excellent tool for building your deposit, offering tax concessions and competitive interest rates. However, I strongly advise my clients to read the guidelines carefully and consult with their super fund before proceeding.

The Home Guarantee Scheme is another valuable option, requiring only a 2-5% deposit while avoiding lenders mortgage insurance, which can save you around $20,000. In my practice, I've seen this scheme help many first home buyers enter the market sooner than they expected.

### State and Territory Incentives

Through my work with clients across different states, I can confirm that first home buyer grants vary by location:

- Victoria: $10,000 for new homes up to $750,000

- Western Australia, New South Wales, and Tasmania: Similar grant programs

- South Australia: $15,000

- Queensland: $15,000 or $30,000

- Northern Territory: $50,000

Stamp duty exemptions or reductions are also available in most states. For example, in Victoria, you're fully exempt if your home's dutiable value is $600,000 or less, with concessions available up to $750,000. This applies to both new and established homes, but you must live in the property for at least 12 months.

## Combining Schemes

One key advantage I often highlight to my clients is that many of these grants and schemes can be combined. However, I cannot stress enough how important it is to understand the restrictions, as there are limited spots available and various conditions regarding income, location, and property value.

## The Lending Process

As a broker specializing in first home buyers, I've found that understanding the lending landscape is crucial. This is particularly important for self-employed or casually employed buyers, as different lenders have varying policies for these situations.

The current lending environment requires careful navigation of various loan products and lender policies. I always ensure my clients understand all their options and the implications of different loan structures before making a decision.

Remember, buying your first home is a significant milestone, and it's essential to make informed decisions about both the property and the financing. While there are many incentives available, each comes with its own requirements and restrictions that need careful consideration.

This information has been prepared by PHA Financial Services and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. The information provided was accurate at the time of publication and changes in circumstances after a document is published may impact on the accuracy of information. Some information may have been collated from various third parties and we make no assertion that the information was originally ours.