Amidst the skyrocketing prices of property in Melbourne, there are a few silver linings that no prospective homeowner should ignore. Affording a home in the central city is not a distant dream for millennials anymore. Several home loan options, super saver schemes and programs are trying to make home-owning a reality for many.
Why buy a home in Melbourne?
Before we get into the details of saving tips and affordability of these premium homes, let us understand why the average Australian wants to own homes instead of renting them. Owning a home is the quintessential Australian dream and renting a home is not gratifying enough. Renting for life is not a very practical option either since paying for rent each month for years on end can cost more than the fair market value of the property.
There is always a positive sentiment towards owning homes in Melbourne like the kind we see at http://m-city.com.au/. Each Australian citizen wants to experience a better quality of life by living close to shopping malls and healthcare centres. Now, there are several ways of realizing the dream of becoming a part of a real community.
How to save up for an apartment in Melbourne?
Finally, we come to the part that will enlighten us with the several ways you can save up for your dream home.
First Homeowner Grant and Stamp Duty Savings
If this is going to be your first home, then you might get up to $10,000 as a grant for an apartment or house with a value of 750,000 AUD in the metropolitan area. All first home owners can now skip paying stamp duty if their home costs are lesser than 600,000 AUD. For properties that cost between 600,000 AUD and 750,000 AUD, homeowners can access lucrative discounts on the taxes.
Parents Assist Loan
As of 2018, parents of the first-time home buyer can help out with a maximum of 20% of the deposit. That removes the requirement of a guarantor for the loan and allows the first-time purchasers to access the conventional home loans. You can enjoy the perks of the new First Home Owner Grant as well as the stamp duty concessions with the help of your mum and dad.
First home super saver scheme
It is a federal scheme that supports first-time home buyers in Australia to save more annually. The aspiring buyers can save the money in a superannuation fund. This saving scheme makes it easy for all first-timers to buy a new home, whether it is in the heart of Melbourne city or the suburbs. The federal government will release the voluntary contributions of 35,000 USD towards the first-time home purchases in a year. The voluntary contributions include deducted and uneducated personal donations, and all forms of salary sacrifice contributions.
To qualify for the most lucrative homeowner’s programs and loans, you must first think about closing your outstanding lines of credit. Consolidate small debts and refinance your credit card payments, if necessary. Having a respectable credit record will help you opt for better financing options available now.