Data collated by AFG says lodgements among first home buyers have increased to 10%. Find out how this benefits first home buyers in Australia.
A new report by AFG says a shake up to the first home buyer market has resulted in promising signs for the sector.
This is on the back of prospective changes to the first home buyer scheme, which is now 17 years old.
The first home buyer scheme is a nation-wide grant, which was implemented to reduce the upfront costs of entering the housing market.
Each grant is governed on a state-by-state basis. (Head here to see what applies to you.)
Also known as the First Home Owner Grant (FHOG), the subsidy was considered a success at first.
Lately, however, the grant has been gathering critics, who say the grant does little to ease the stress of entering the modern housing market.
It appears authorities are listening, with the Victorian Government announcing changes to the FHOG.
New South Wales is also looking at how the grant could better respond to the current market.
Data collated by AFG says lodgements in the first home buyer sector have increased to 10%. The last time lodgements were at this level was in early 2014.
This increase is a positive sign for the sector.
AFG interim CEO David Bailey had this to say.
“First home buyer numbers have been in the single digits for some time,” he said.
“It is good to see state governments looking to support those trying to get a foot on the property ladder.”
On whether proposed changes will impact Australia’s 2 most populated states, Mr Bailey said only ‘…time will tell’.
Increased lodgements in the first home buyer sector, combined with the possibility of Victoria and NSW making changes to their first home owner grant schemes, makes it likely that the sector will continue to improve.
With this in mind, it’s worth taking a look at the grants available in your state or territory to see how you could lower your upfront costs.
A good mortgage broker will also be able to assist, by connecting you with subsidies that apply to you.
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