All eyes will be eagerly awaiting the outcome of tonight’s budget. None more hopeful than our first home buyers who have been the subject of much discussion in the lead up, on ways to encourage them to enter the property market.
Suggestions include giving generous tax breaks by allowing first home buyers to direct pre-tax income into a savings account to help them get their foot on the property ladder.
Under that scheme, hopeful property buyers could contribute just $5000 of their pre-tax earnings into a savings account, effectively reducing their taxable income by $5000 in that year. An additional $5000 a year post-tax income could be added to the account, taxed at a concessional rate.
It won’t provide the entire answer but, anything that can be done to help first home buyers achieve their property dreams should be welcomed and it will certainly assist those already on a savings plan to make the most of their income and achieve their home ownership goal sooner.
Overall a good guide for people is to try and save at least 10 per cent of their income.
If you would like assistance in understanding how much deposit is needed to purchase your dream home, please call me on 82632930.