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Could The Regional First Home Buyer Support Scheme Help You Have A Tree Change Let's Find Out
First home buyers looking to invest in regional areas can now take advantage of the Federal Government’s newly announced Regional First Home Buyer Support Scheme — the latest in a slew of government strategies aimed at addressing housing affordability in the country.
🏠 The scheme will help 10,000 first home buyers each year purchase a property with as little as 5% deposit and no need for lender’s mortgage insurance (potentially saving buyers up to $32,000 in additional costs).
Why the Regional First Home Buyer Support Scheme is important
Property prices in many regional areas have gone up at a greater rate than in capital centres, with rent increasing exponentially.
This has ultimately created a housing crisis that has hit residents of these areas hardest.
🤗 According to the Albanese Government, Labor’s plan will bring home ownership back into reach for tens of thousands of Australians in regional areas over the next few years.
The scheme, in a nutshell
From October 1, 2022, the government will offer 10,000 places for applicants to buy a home with a minimum 5% deposit and no lender’s mortgage insurance.
✍🏻 Applicants can purchase new and existing houses, apartments, as well as land with a contract to build. Pricing caps for properties in each region are the same as those listed for the First Home Guarantee Scheme.
In order to qualify for the scheme, applicants must:
Have been living in the region or nearby for at least 12 months.
Be a first home buyer who is an Australian citizen over the age of 18.
Live in the purchased property for at least 12 months.
Have a taxable income of less than $125,000 per year for singles, and $200,000 per year for couples.
Things to weigh up
It's a very big decision to up sticks and move to a new place where you don't know anyone. Here are some other things to consider:
🐄 Regional areas can offer larger blocks than urban locations, giving residents more bang for their buck.
🌊 However, anyone considering a sea change will need to think about how the move might affect their kids, changing schools can be a really big deal.
🛒 You might also have to commute to get to the shops, fill your petrol and see a show. Things you may have taken for granted in the big city.
🚒 What’s more, regional areas, although idyllic, also carry the risk of floods and bushfires — phenomena that have become more common than not over the past few years.
The bottom line
The Regional First Home Buyer Support Scheme is a fantastic initiative which could give tens of thousands of residents access to housing over the coming years.
🌳 However, those looking to “escape to the country” need to consider the scheme’s requirements:
Most importantly the need to live in an area for 12 months before applying.
As well as the fact that even with government support, property prices are still relatively high in these areas, making mortgage repayments equally merciless.
It's also worthwhile noting that you will be moving away from your friends and family, so you will be more isolated too.
