“With the continuing stimulus and economic recovery in effect we see more growth in the Northern beaches real estate market. Good news for our vendors and still opportunities for our buyers”.
Peter Mosedale, Director in Charge.
“Australia is getting back on its feet.”
These are the words Treasurer Josh Frydenberg declared after presenting the Federal Budget for 2021/22 on Tuesday evening this week. This comes after the Coronavirus pandemic took its toll only a year prior, sending huge shock waves through our country’s economy like no one has felt since the Great Depression.
Despite everything, it’s forecast that Australia’s economy will increase by 4.25% in 2022 – and this will have a positive impact on the real estate industry. Treasurer Frydenberg added that new house starts are at their peak level in 20 years while first home buyers are at the highest level in the past 12 years.
This year’s Federal Budget has put a strong focus on providing assistance to single-parent households and offering additional support for first home buyers who are just starting their property journey.
We’ve put together some of the main Australian Federal Budget highlights to summarise all the incentives and changes that impact the real estate industry – to keep you in the loop.
2021/22 Federal Budget Major Takeaways for the Real Estate Industry
- Family Home Guarantee
This newly introduced measure will allow 10,000 single parents to purchase an existing home or build a new one for as little as a 2% deposit for the next 4 years.
- New Home Guarantee
The New Home Guarantee has been expanded for a second year to allow additional 10,000 places for 2021/22. This scheme enables new home buyers seeking to build or purchase a new house to be able to do so with a deposit of as little as 5%.
- First Home Super Saver Scheme (FHSS)
The FHSS, which was launched last year, will continue to allow first home buyers to save money for their first home using their superannuation fund. The Federal Budget has also increased the maximum amount of voluntary contributions which can be released from $30,000 to $50,000.
A Downsizer scheme (which was launched in the 2017/18 Federal Budget) allows people aged 65 and over to make a voluntary superannuation contribution of up to $300,000 from the proceeds of selling their homes. The 2021/22 Federal Budget reduces the eligibility of this from 65 to 60 years.
- Homebuilder Extension
This program, launched previously, has now extended the construction commencement requirement for all applicants from 6 months to 18 months from when the eligible contract was signed. This will promote positive growth in the construction pipeline and provide additional jobs for the sector.
Good news for Australian Real Estate
Based on these key points, the 2021/22 Federal Budget has been overly positive for the real estate industry, with the government showing its support of homeownership.
So, if you are considering buying your first property or thinking of selling to take full advantage of Sydney’s hot property market, now is a great time.
Not only does this Federal Budget benefit homeowners and buyers, but the updates will also result in employment growth through additional infrastructure spending which will support the country as a whole as we continuously regain economic strength.
How Upstate can help you
As your Northern Beaches property experts and trusted Sydney real estate partners, we understand the Federal Budget updates and how they can impact your real estate journey.
So, if you want more information or are keen to know about how you can benefit from these recent announcements, contact us today.
Our team is committed to helping you find yourself in a better place and achieving your property goals.