With historically low interest rates available at the moment, now could be the perfect time to get your foot on the property ladder. If you are thinking about buying your first home, you’ll be very happy to hear that there are quite a few government schemes available to you. This will probably be one of the largest investments you’ll make in your life and you will undoubtedly feel a little overwhelmed (and quite excited), so for your convenience, we’ve put together a list of all the incentives available to first home buyer, owner occupiers in Queensland.
Lender’s Mortgage Insurance (LMI) is insurance that covers the lender’s risk within a residential mortgage transaction in case the borrower fails to make loan repayments. A lender considers a loan to carry a higher risk if the loan-to-valuation-ratio (LVR) is more than 80 per cent of the purchase property price, this is when LMI is payable.
If you consider that the average price of a home in Brisbane is $550,000, that would mean a deposit of around $110,000 would be required. The major benefit of LMI is that borrowers with smaller deposits are able to enter the market sooner rather than later, allowing the dream of homeownership to become a reality for a lot of first home buyers.
Originally due to revert back to $1,000 on July 1st 2020, the Federal Government has announced an extension of the instant asset write-off threshold increase, through to the end of the year, 31 December 2020. Great news for small business!
The HomeBuilder program, a $25,000 grant, is available to eligible owner-occupiers (including first-home buyers) wanting to substantially renovate their existing home or build a new home. This grant is tax-free and is available for contracts signed between June 4 2020 and 31 December 2020 with construction to commence within 3 months of the contract date. The government hopes that this will lead to between 25,000 and 30,000 new builds or significant renovations as they anticipate that the housing industry will go through a tough period following the economic fallout from COVID-19.
We once again find ourselves approaching the end of the current financial year (and what a year it has been!). Due to the COVID-19 pandemic, the ATO have increased the instant asset write-off threshold from $30,000 to $150,000. They have also expanded access to include businesses with a turnover of less than $500 million, up from $50 million.