Federal Budget 2020: First Home Loan Deposit Scheme expanded
- Posted By Pasang Sherpa
The scheme, which has already assisted 20,000 first home buyers in purchasing a home this year, will also see caps on the prices of new homes increased from $750,000 to $950,000.
Treasurer Josh Frydenberg said that the residential construction industry, which currently contributes around 5 per cent to the nation’s overall gross domestic product, remains essential in boosting the Australian economy as it recovers from the coronavirus pandemic.
“Helping another 10,000 first home buyers to buy a new home through our First Home Loan Deposit Scheme will help to support all our tradies right through the supply chain including painters, builders, plumbers and electricians,” Frydenberg said.
“Combined, the First Home Loan Deposit Scheme, HomeBuilder and First Home Super Saver Scheme represent an unprecedented level of government support for home buyers and the construction industry alike.”
Price caps for extended scheme
^ Source: Federal Treasury. Note: The scheme applies only to newly-built homes and runs from 6 October 2020 to 30 June, 2021.
An additional 10,000 places will now be provided from 6 October 2020 to support the purchase of a new home or a newly-built home and will be available until 30 June 2021.
Successful applicants will be able to buy homes worth up to $950,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane, and $550,000 in Perth.
“Australia is in a bit of a demographic ‘sweet spot’ for first home buyer demand, given the relatively large millennial generation are now at a typical first home buyer age,” Corelogic research analyst Eliza Owen told The Urban Developer.
“Over the past 10 years, first home buyers have on average accounted for 23 per cent of owner occupier finance for the purchase of housing, and this has now climbed to 30 per cent.
“The impact on dwelling values depends on how much of demand-side stimulus is funnelled into new stock.
“Theoretically the establishment of new housing may not increase dwelling values in the established market, though new builds may become more expensive up to the threshold as demand increases.”
SOURCE:
Landy, S., 2020. news.com.au. [Online]
Available at: https://www.news.com.au/finance/real-estate/melbourne-vic/federal-budget-2020-first-home-loan-deposit-scheme-expanded-homebuilder-untouched/news-story/cd753b6ff9f5eafb5158fb3f2ff85c45