The availability of rental properties has been decreasing, which has left many people feeling uncertain about their housing situation. However, there are government schemes available that can make homeownership a reality for many.
One such scheme is offered by the federal government through the National Housing Finance and Investment Corporation (NHFIC). This scheme offers low-deposit and no lenders mortgage insurance (LMI) options, which can help fast-track the home buying process by up to 4.5 years on average. These schemes are particularly useful for those who don’t have a standard 20% deposit. By reducing the upfront costs, these schemes make it easier for people to enter the property market.
Apart from these federal government schemes, state governments also offer a range of stamp duty concessions and first home owner grants (FHOG) to eligible first home buyers. The FHOG varies in amount and eligibility criteria depending on the state. For example, in New South Wales, first home buyers can receive up to $10,000 towards the purchase of a new home. In Victoria, the FHOG is $10,000 for new homes and $20,000 for regional homes.
It’s important to note that these schemes often have limited spots, and are therefore in high demand. So, it’s crucial to act quickly if you’re considering applying for one of these schemes.
It’s recommended that you speak to a professional if you’re considering the move from renting to owning a home. A financial advisor or mortgage broker can help you explore your borrowing options and eligibility for government schemes. It’s important to remember that personal circumstances vary, and seeking professional advice before taking any action is always recommended.
In summary, the declining availability of rental properties can be concerning, but there are government schemes available that can help first home buyers enter the property market. These schemes include low-deposit, no LMI options offered by the NHFIC, as well as state-based FHOG and stamp duty concessions. Seeking professional advice before making any decisions is important, and acting quickly is crucial due to the limited spots available in these schemes.
