Brighter Buying

Market Update: Federal budget announced, what’s in store for property?

by Justin Watt, CEO 8 October 2020

This year’s federal Budget was handed down by Treasurer Josh Frydenberg on Tuesday night.

The extension of the First Home Loan Deposit scheme was one of the few housing-related measures with an additional 10,000 places being made available.

The added places in the scheme do come with a new set of requirements, restricting those utilising the places to the building of a new home or purchase of a newly built home, which was not a requirement of the original scheme.

Price caps for the scheme have been raised in accordance with the new requirements, for Brisbane and other Regional Centres in QLD the max purchase price is now $650,000 increased from $475,000 and the rest of QLD is now $500,000

The extension of the scheme complements the $25,000 cashback announced in June for homebuyers buying newly built homes, known as HomeBuilder.

There was nothing announced in the budget for landlords who have had a rough deal this year with the moratorium on rents introduced at the early onset of the pandemic.

The Treasurer announced $12.5bn in personal income tax cuts over the next 12 months, which will provide around 11.6 million individuals with a tax cut in 2020-21. The relief will total up to $2,745.00 a year for singles and up to $5,490.00 for couples.

The housing market will likely get a boost in activity from the tax relief and stimulus aimed at creating jobs.

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