Morrison Government would indefinitely subsidise first home buyers’ property purchases

The HomeBuilder scheme allows for home owners to gain up to $25, 000 in government support for renovations between $150, 000-$750, 000 on properties that are worth less than $1.5 million prior to the renovation. “There’s opportunities especially in the Brisbane area. You can buy properties fairly close to the CBD under that price range and add value with the renovation, ” Mr Jennison said. The scheme, which is targeting larger repairs over cosmetic changes to property, is targeting structural changes. “People think renovations are cheap. A lot of people are very surprised when we tell them it’s probably cheaper to build new than renovate. “So you can chew into a lot of money when you start renovating. But if you can get it up to $150, 000, you can get a new kitchen for $25, 000, ” Mr Jennison said. “I think that is the danger when the government releases these sort of stimulus packages. People shouldn’t spend money just because they can.” “It really needs to be part of an overall plan to ensure that you're not overcapitalising because if you spend that money because the government is going to give you a $25, 000 rebate and you have to sell in two or three years time and you’ve overcapitalised, you may not get that money back. Source: x What to know before accessing the HomeBuilder sche... Investors are being urged to consider their property portfolios before trying to access the Morrison government’s latest stimulus package. www.smartpropertyinvestment.com.au

One month in and the First Home Loan Deposit Scheme has already attracted more than 5500 keen first-time buyers – and the race is on for purchasers hoping to be approved before the 10, 000 coveted places are snapped up. Although the Federal government’s scheme has attracted both positive and negative attention from inside and outside the property industry, when it comes to those first-home buyers who’ve signed up, the good news is in. Apply now, buy later Despite the fact that more than half of the FHLDS spots have already been allocated through major banks (mostly the Commonwealth Bank and National Australia Bank), and hundreds of applications and inquiries are being made each week, there is still time for first-home buyers to apply according to Glen Spratt, managing director of non-bank lender Mortgageport. “There are still spots available with the smaller panel of 25 lenders, ” he said. “And that’s really what the scheme was supposed to be all about – creating more competition in the lending space, ” he explained. Mr Spratt said the key message to first-home buyers seeking access to the scheme right now is to not just focus on the big banks, but consider talking to one of the other 25 lenders working with the FHLDS. Read more:x First Home Loan Deposit Scheme: Why persistence is... Despite government help, things can still look pretty tough if you are a first-home buyer, but all you need is a little persistence and the right advice to find your dream address. www.realestate.com.au

Prime Minister Scott Morrison’s flagship First Home Buyer Loan Deposit Scheme launched earlier this month will mostly benefit higher income earners who may not have needed as much help as poorer families, analysis reveals. The scheme, announced just before last year’s federal election and effective January 1, allows 10, 000 first-time buyers each year to purchase properties with only a 5 per cent deposit, with the government guaranteeing the loan so that buyers won’t need pricey lender’s mortgage insurance. Read More:x Scott Morrison’s First Home Buyer Loan Deposit S... It became accessible just a week ago but Scott Morrison’s flagship first home buyer loan deposit scheme, promised before the federal election, is already facing renewed criticism. www.realestate.com.au