The new financial year begins tomorrow, and there’s some pretty cool things for people looking to enter the property market (not just first home buyers).
There’s also some shitty new taxes for property owners.
I thought today would be good to give a snapshot of the changes.
Also, be wary on the streets tonight because 30 June also means today is New Years Eve for Accountants…
Imagine the parties raging across the country – shout out to my mate Clayton Wood of Business Edge Accountants shown here from last years 30 June night out:
Changes coming in the new financial year
If you’re purchasing in the new financial year, the State Governments fees normally increase every year. If you’ve been quoted stamp duty or registration fees prior to 1 July, then you should recalculate after 1 July to make sure it’s accurate.
Here’s the calculator we use and it’s very reliable, if you’re not sure refer to your solicitor or conveyancer.
Home Guarantee Scheme
The Home Guarantee Scheme is designed to help you avoid Lenders Mortgage Insurance fees and the higher interest rates that come with those loans, typically saving around 1% higher interest rate, so the scheme makes the home much more affordable for those trying to enter or re-enter the property market. Only available through participating lenders and with limited places available – it’s not available in unlimited numbers.
Who’s eligible?
- First home buyers
- Single parents or single guardians (do not have to be first home buyers)
- Non-first home buyers wanting to re-enter the property market after 10+ years
What’s changed?
- Increase in the number of places available
- Expanded eligibility (single parent guardians, regular non-first home buyers)
- New lenders coming on board
Many lenders still require you to genuinely save your 5% deposit so you might need to shop around if your funds is from a gift, inheritance, sale of asset or any other source.
Investors
- More land tax: States with land taxes has expanded to include ACT, Queensland, South Australia and Western Australia. In Victoria, a second home or investment property from 1st January will incur a new flat rate tax of up to $975 plus an additional levy based on land value. Whilst NSW property owners will incur land tax from 1st January.
- The ATO is reportedly cracking down on sniffing out undeclared rental income and capital gains – even for selling your principal home if you’ve been renting out a portion of it. Make sure you have a good Accountant helping you out (Clayton – the dude in the above photo is about 1600km from where I live and work. Find a good one, they don’t have to be next door).
- Queensland brings to law, you can only increase rents once per year (as it is in Victoria).
Help To Buy Scheme (Shared Equity)
Not yet available, the government is still working on the implementation of this scheme with the various State governments.
The Help to Buy Scheme is being designed to home buyers to purchase a property with a smaller deposit, providing assistance for people to enter the property market with a smaller deposit and benefit from a smaller loan and lower repayments.
The government will contribute cash in the form of purchasing a share of your property with you (sharing equity) and the size of the contribution available can vary from up to 30% for an existing home or up to 40% of the purchase price for a new home.
Whilst you would not be required to pay rent on the portion of the home held by the Government, the Government’s equity contribution is expected to be paid down over time (details not yet clear), or paid back if you sell.
Who’s eligible?
- First home buyers
- Single parents or single guardians (do not have to be first home buyers)
- Non-first home buyers wanting to re-enter the property market after 10+ years
And…
There’s a few other things in this AFR article that might be helpful.
FFS, enter your real details to get the weekly tips
Articles and other things I thought you’d like because you’re interested in some things sometimes…
Deal of the week:
Refinance cashback of $4,000 PLUS your investment loans with no rate margin, meaning your investments and principal home are the same interest rate.
Send us a FB message to find out which lender.
Good news for investors – rents have increased a lot and tipped to continue:
Read about it here.
“Cease to hope and you will cease to fear…” – Seneca
It’s not about overcoming our fears but understanding that both hope and fear contain a dangerous amount of want and worry in them, and that is what causes all the worry – the daily stoic book.
What are you hoping happens with interest rates, the property market, or anything else?
Important Economic Announcements from this week
Inflation this month dropped lower than expected – down to 5.6% for the past year.
On Thursday, retail sales data was higher than expected with an 0.7% increase.
- Friday mornings Housing Credit and Private Sector Credit announcement of lesser importance.
All of this will definitely be on the RBA’s mind when they made a decision on Australia’s interest rates next week.
Thank you for reading!
Hit me up via facebook if you have a suggested topic or any questions.