The budget for first home buyers | DOMAIN

Federal budget proposals enabling first home buyers to use voluntary contributions from their superannuation towards a house deposit has been welcomed by Bendigo real estate agents. Contributions will be capped at $30,000, with both members of a couple able to embrace the initiative.

A FOOT IN THE DOOR: Is Bendigo on the verge of a real estate boom, thanks to the Super Savers Scheme? The federal budget proposal will enable first home buyers to use voluntary contributions from their superannuation to save for a house deposit.

A FOOT IN THE DOOR: Is Bendigo on the verge of a real estate boom, thanks to the Super Savers Scheme? The federal budget proposal will enable first home buyers to use voluntary contributions from their superannuation to save for a house deposit.

“Previously, the First Home Owner Grant has proven to be a precursor to a boom in the Bendigo area and agents think the same thing will very likely happen again,” says agent Luke Goggin.

“First home buyers have definitely gone into hiding until July 1, but the builders are telling us they are very busy with enquiries, so we are expecting land sales to massively take off at the start of the financial year.

“The flow on effects of this are enormous, as the construction industry fuels the GST coffers, from every nail that goes into a frame, to the trucks that transport the goods and everything else in between. The Government will recoup the initial investment easily from every build, plus plenty more for the tax payer.”

The Real Estate Institute of Australia also said they support the budget proposals for first home buyers.

“With home ownership in Australia declining and first home buyers finding it increasingly difficult to enter the housing market, allowing first home buyers to build deposits with superannuation through voluntary contributions is welcome, said president of the Real Estate Institute of Australia Malcolm Gunning.

“While REIA has advocated for a more aggressive approach to bridging the deposit gap by allowing first homebuyers access to existing balances in superannuation accounts, the Government’s initiative will reduce the time taken to save for a deposit by about 25 per cent.” 

However, according to Mr Gunning, super contributions may not make a big difference for those looking to buy in inner city areas.

“With the high cost of stamp duty in Sydney and Melbourne, for first home buyers to have a $30,000 opportunity through super will assist, but because the prices are high, it’s still quite a jump. 

“The budget’s proposals for first home buyers will help outer city areas and regional Australia, that’s where the benefit will be felt. We also think it’s positive they’re challenging the states to address the real issue with stamp duty,” Mr Gunning said.

Overall, Mr Gunning said they welcome the budget infrastructure proposals, but have concerns about the message to foreign investors. “We welcome infrastructure, such as the rail links they’re proposing and an infrastructure spin in Victoria. It will introduce jobs in more affordable locations.

“But there’s a little concern about the message to foreign investors who have been big drivers of the construction industry and economy.”