822 every first home buyer scheme & incentive (and how to stack them)

[upbeat music] So the first thing I wanna talk about is the First Home Super Saver Scheme.

So this is probably...

That's a national-based scheme, um, and that is basically where you save your, um, deposit for your home in super.

It's a federal-based government initiative that allows first home buyers to add voluntary contributions, so the contributions above what your employer's, um, already paying, to your super in a tax-effective environment.

So you can, you can contribute up to $15,000 a year towards the First Home Super Saver Scheme and a total of 50,000 in your lifetime.

Now, some people think this is a great scheme because, you know, you're basically saving in a tax-free or a tax, uh, saving way, um, and it's basically looking at pre- pre-tax dollars or lower-tax dollars.

Um, and I guess some people think, "Well, I don't know if I'm gonna rentvest or if I'm gonna buy to live in, so I don't know if I should do that." I guess the big thing to know is if you end up saving money in this environment and then you choose to buy an investment property rather than buy a property to live in, you can reverse it.

You have to pay the tax on the way out, but you can do it that way.

With that contribution cap, if you use the First Home Super Saver Scheme, um, you're basically able to save, uh, up to $15,000 a year up to, um, 50,000, and it's got a, it's got a...

Some people might need a number of years to be able to save.

So if you're thinking about buying a property in four or five years' time, it might be time to think about now starting to save using the First Home Super Saver Scheme.

Your accountant can give you some more details on that.

Um, you can also get some more details, um, through different government websites.

I'm gonna put a link to the state and federal websites where you can get all of this information in the show notes.

So that's the First Home Super Saver Scheme.

The second one, which, uh, I think a lot of people have been using since it changed in August last year, is the Australian Government 5% Deposit Scheme.

So the fi- the Australian 5% Deposit Scheme, and I think a lot of people are across this now, is basically you pay 95%, you need a 5% deposit, um, and they guarantee the other side.

So they basically guarantee 15% of the purchase price.

So if you're in New South Wales, for example, and you're borrowing and you're buying a house for 800,000, all you would need is a $40,000 deposit if you qualify for the stamp duty concession, which is state-based, that we're gonna go into a little bit later.

So the Australian, um, Government 5% Deposit Scheme is a basically the government guaranteeing you into a property.

So we talk a lot on the show about parental guarantees and the parent or, you know, a sibling offering that 20% guarantee.

This is basically the government offer- offering you a guarantee.If you can-- so I guess the big saving for the, um, Australian government five percent deposit scheme isn't just the fact that you only need a five percent deposit, it's the fact that you don't pay what's called lender's mortgage insurance.

So for those of you who don't know, lender's mortgage insurance is a one-off risk fee that you pay as the buyer, but it doesn't protect you against anything.

It protects the bank against you as a risk.

So they're basically, um, you know, if you were buying a property for... let's use that example, you're buying a property for eight hundred thousand and you had a forty thousand dollar deposit, and you're borrowing ninety-five percent, on top of that, you would also need a mortgage insurance premium, and at that level it might be thirty thousand dollars.