Budget 2021 – What does it mean for property and home owners
Date: 14th May 2021
Topic:Â 2021 Federal Budget and Property
As you may have seen, Josh Frydenberg announced in his budget speech to help thousands of first-home buyers and single parents to realise their homeownership dream. The government flagged a $782.1m commitment over four years to raise the rate of homeownership and to support construction jobs.
Two budget measures are likely to change the dynamic in the residential property market.
The federal government has extended the First Home Super Saver Scheme so Australians can contribute up to $50,000 to their super fund to be used for a deposit, up from $30,000 when the scheme was introduced in the 2017-2018 budget.
An extra 10,000 places will also be added to the First Home Loan Deposit Scheme so first home buyers who are approved for the scheme can buy or build a new home with a deposit of just 5 per cent.
Single parents will be backed to buy their own home with a 2 per cent deposit.
The federal government is also continuing its incentive to underwrite lenders’ mortgage insurance for this group of borrowers.
These measures are designed to give first-home buyers a leg up into the booming property market.
At the other end of the spectrum, the age at which retirees can access the downsizer scheme has been lowered from 65 to 60.
The measure allows people older than 60 and are in retirement who sell the family home to contribute $300,000 from the sale proceeds to their super fund over and above other contribution rules.
Couples are able to add $600,000 to their super savings from this scheme.
What does this mean for you?
The wave of positivity continues! At Frank Gordon our numbers speak for themselves. For our 2021 sales, the average days on market sits at 25 days (just three and a half weeks).
This indicates buyers are raring to snap up properties. Our sellers have been priced well, we communicate with them throughout the campaign effectively and have been achieving amazing results on their behalf.
Should you have any questions in relation to buying, selling, leasing or investing, please do not hesitate to call or email me. Our team is always happy to help.
The first step in making a decision is bringing together the most up to date information and research you can. Start by requesting a free appraisal here and we can discuss how all of this impacts your property.