First Home Buyers Earn $2,040 per Couple per Year
Announcement posted by Natures Walk 09 Aug 2013
Developer of house and land packages in Mandurah reveal how government program has “flown under the radar”, despite allowing couples to profit more than 20% with a tax of only 15%.
Mandurah, WA, August 09, 2013 - Sometimes government programs are too good to be true. The latest break for first-home buyers under the Gillard Government sounds too good to be true, but is actually available as of this writing. The grant provides a return of up to $2,040 per year, tax free, for first-home buyers. For some reason, though, only 39,000 out of more than 750,000 first-home buyers have signed up for the program.
The program even allows buyers of investment properties to take advantage of it more than once, as long as they have never lived in any of the properties. This means that a property investor could theoretically take out 1,000 “first-home loans”, as defined under the program.
So one might ask, “Why aren't more people taking advantage of this program?” Many believe that the description of the program is too complicated, and that it doesn't actually reveal the program's potential.
Under the program, first-home buyers must contribute to an official first-home saver account. They must contribute a minimum of $1,000 to the account for every one of four consecutive financial years. If they deposit at least $1,000, the government will make a matching contribution of up to $1,020 per account.
Couples can make two separate accounts, meaning they can earn a total of $2,040 on the account. Members Equity Bank currently pays 3.85% on the loans, meaning that the loan pays a total of 20.85%, counting bank interest and government contributions. The 3.85% interest is taxed at a rate of 15%, meaning that the return is still close to 21%.
Some potential first-home buyers might ask, “Isn't four years a long time to wait to purchase a home?”
The government doesn't fully explain the mechanics of the loan, but note the term, “financial years”. A first-home buyer could theoretically make a contribution on 30 June one year, then make a contribution of at least $1,000 (or hopefully $6,000 on 1 July that same year), but cover two financial years.
The buyer then would make another contribution on 1 July of the next year, covering three financial years in 366 days. If the buyer then purchases a home in the “third financial year”, it counts as a contribution to the savings.
Madeleine McErlain, Marketing Manager for 4Land Property Group that offers home and land packages, has tried to alert as many potential first-home buyers as possible about this program:
“We didn't fully understand the potential of this program when it was first announced, but our financial people were soon able to figure it out. Now, we encourage nearly every first-home buyer to put all of their down payment money into a first-home saver account. Even if a couple can't put down $6,000 each in individual accounts, there is still some free money being given by the government that should be taken advantage of.”
McErlain, who specialises in first-home buyers, concluded, “Natures Walk Estate offers plenty of house and land packages in Erskine that are perfect for first-home buyers. We hope more will take advantage.”
Natures Walk Real Estate offers house and land packages in Erskine, adjacent to Mandurah. Their master-planned community provides a rural lifestyle with access to city amenities. For more information, call (08) 9301 4445 or visit their website: http://www.natureswalk.com.au/.
The program even allows buyers of investment properties to take advantage of it more than once, as long as they have never lived in any of the properties. This means that a property investor could theoretically take out 1,000 “first-home loans”, as defined under the program.
So one might ask, “Why aren't more people taking advantage of this program?” Many believe that the description of the program is too complicated, and that it doesn't actually reveal the program's potential.
Under the program, first-home buyers must contribute to an official first-home saver account. They must contribute a minimum of $1,000 to the account for every one of four consecutive financial years. If they deposit at least $1,000, the government will make a matching contribution of up to $1,020 per account.
Couples can make two separate accounts, meaning they can earn a total of $2,040 on the account. Members Equity Bank currently pays 3.85% on the loans, meaning that the loan pays a total of 20.85%, counting bank interest and government contributions. The 3.85% interest is taxed at a rate of 15%, meaning that the return is still close to 21%.
Some potential first-home buyers might ask, “Isn't four years a long time to wait to purchase a home?”
The government doesn't fully explain the mechanics of the loan, but note the term, “financial years”. A first-home buyer could theoretically make a contribution on 30 June one year, then make a contribution of at least $1,000 (or hopefully $6,000 on 1 July that same year), but cover two financial years.
The buyer then would make another contribution on 1 July of the next year, covering three financial years in 366 days. If the buyer then purchases a home in the “third financial year”, it counts as a contribution to the savings.
Madeleine McErlain, Marketing Manager for 4Land Property Group that offers home and land packages, has tried to alert as many potential first-home buyers as possible about this program:
“We didn't fully understand the potential of this program when it was first announced, but our financial people were soon able to figure it out. Now, we encourage nearly every first-home buyer to put all of their down payment money into a first-home saver account. Even if a couple can't put down $6,000 each in individual accounts, there is still some free money being given by the government that should be taken advantage of.”
McErlain, who specialises in first-home buyers, concluded, “Natures Walk Estate offers plenty of house and land packages in Erskine that are perfect for first-home buyers. We hope more will take advantage.”
Natures Walk Real Estate offers house and land packages in Erskine, adjacent to Mandurah. Their master-planned community provides a rural lifestyle with access to city amenities. For more information, call (08) 9301 4445 or visit their website: http://www.natureswalk.com.au/.