May has certainly been an eventful month for property on the back of changes announced by the State and Federal governments.
Just last week, Mark McGowan’s newly elected government advised that the first home owners grant would be reduced back down to $10,000 from July 2017. At the beginning of the year, Colin Barnett added a $5,000 bonus to the grant in order to support first time buyers and stimulate the residential construction industry. Labor claims the increase didn’t make enough of an impact for them to consider keeping it around.
Thankfully, we at Nicheliving have something up our sleeve that will not only help first home buyers, but all West Australians looking to purchase property, so stay tuned!
Meanwhile, the Federal government has come up with a new initiative to assist first home buyers by assisting them to save for a deposit.
In the recent 2017-18 budget, the Turnbull government declared that from July 1 first home buyers will be able to salary sacrifice in to their super funds. This will be over and above any existing super contributions that are required and when the time comes to withdraw the deposit, first home buyers won’t be able to touch any of their remaining super.
On the surface, this may seem like a glorified way of putting cash aside, but there are tax benefits that come into play with salary sacrifice, and this means the deposit saving process can be sped up.
But the budget isn’t just about the young’uns! Australian pensioners have been avoiding downsizing out of fear that a surplus of funds could lead to a cut in their benefits. Now, from July 2018, retirees will be able to put up to $300,000 in proceeds from the sale of their home into their superannuation fund. This applies to Australians over the age of 65 who have owned their home for at least 10 years.
On a broader scale, the budget also announced that a National Housing Infrastructure Facility will be set up to cover the costs of building new road and water networks. Over 5 years, $1 billion will be contributed to local governments to assist in constructing infrastructure necessary to support the supply of new housing.
Additionally, a National Housing Finance and Investment Corporation will operate an affordable housing bond aggregator to encourage more investment in affordable housing.
So, there you have it; some key takeaways for the future of housing as per the plans of the Federal government, and the future looks bright!