Liberal pledges $500m for first-home buyer deposits and Labour has agreed to match this commitment.
Lets do calcualtion first:-
If you are a first home buyer and planning to buy a property worth $500k and has $25k that is 5% of $500k and government is contributing 15%, i.e $75k ( This will potentially help you to save in LMI )
But if we do maths, it will be helping 6,667 first home buyes only from the above scenario with this $500M at a time. What if 10,000 first home buyers applie at a time?
=$500,000,000/$75000 = 6,667 ( Number of first home buyers )
Another big question is that can you keep this 15% like First Home Owners Grant ( FHOG )?
Looks like NO. They have said, support would stay in place for the life of the loan or until it is refinanced, it seems like a HELP FEE isn’t it?
That means, they are planning to rotate this money/fund around.
Who is eligible for this?
This scheme will be targeted towards first-home buyers earning up to $125,000 gross income annually or $200,000 for couples. This will start from 1 Jan 2020 not straight away.
In conclusion, it is good for First Home Buyer as they will be saving money in LMI and getting into property. However, on the other hand, how many FHB will be eligible and what would be the payback methods, need to see. And we ( LHL ) hope this will not surge the property price again. Lets hope this is not just a cosmetic marketing.
For more detail => CLICK HERE ( Financial Review )
Disclaimer: This is for general idea only and please feel free to share your thoughts.
Posted on: May 13, 2019, By: Laxmi - LHL