People work hard to gain more money in order to save for their future home. However, for many younger Australian, apparently, it takes more than a hard work to pursue a house of their dream.

Thankfully, the government recently released a program called the First Home Super Saver Scheme. This program allows people to save easier by allowing them to build a concessional taxed deposit inside superannuation.

First Home Super Saver Scheme

From 1 July 2017, any individual Australian citizens can contribute voluntarily up to $15,000 per year and $30,000 in total to their superannuation account to purchase a first home.

These contributions, which will be taxed at 15%, besides with the deemed earnings, can be withdrawn for a deposit. Any withdrawals will be taxed at marginal rates by less than 30%.

Visit Factsheet about First Home Super Saver Scheme to understand what benefits people can gain from this new program.

Tips for First Home Buyers

Since you are now capable of saving for your dream house, we have a few tips you can follow before you spend your money. Take a look below:

1. Research early

Australian capital city housing markets are relatively stable and solid over the long term with significant financial advantages for home ownership, particularly through taxation benefits

If you start to do a research early, you can have more options, make a prediction about your future home as the time goes by and make a better decision when you finally ready to purchase your dream house.

2. Affordability matters

Never buy a house that you can’t afford. Affordability is, however, an essential element when you decide to buy a house. Try to look at established suburban areas for affordable home choices.

Remember, you still have thousands list of things you need to purchase to fill in the house. It is important to consider buying a house that represents your affordability, as long as it is comfortable for you and your family.

If you have enough money to buy a house that you think best for you, then do it. You can always upgrade in the future anyway.

3.  Learn about the sale process

As a first-time buyer, you need to find out which process works best for you–auction or private sale. Learn how it works in the state where you purchase your house. It is also important to understand your rights and responsibilities before making the buying decision.

4. Professional advice

If you are handling your first purchase, you may need a help of an expert. Especially when it comes to things you’ve never dealt with before.

You need to ask for legal advice before signing any sale contracts, especially if the house worths a lot of money. Information and details about the property will be disclosed in the title and contract of sale. You will need a lawyer or conveyancer to look over the documents.

It is also recommended to hire a building inspector if you think you are not sure about the condition of the house. This step will prevent you from buying a broken house which may cost you more for repair service.

5. Always do your own research

Never rely on your agents for every information that you need. You may contact them still, but you still need to do your homework. Try to do some research before meeting your agent or making any decision. It is better to have more information than you know less.

Summary

Purchasing a home is a long-term investment and saving. You can spend your big saving on something that you will regret in the future. Discuss with Financial Advising Team if you’d like some help to manage your financial tasks, so you can save better for your dream home.