4 great reasons to buy a new property in 2020!
If you’ve been waiting for the right time to buy a new property, luckily you don’t have to wait any longer! Record low interest rates and recent government incentive schemes have made this the ideal time to purchase your brand-new dream home.
Record low interest rates
We all know interest rates are a major expense for home buyers. Whether fixed or variable, the higher the rate of interest, the more you spend on the overall cost of your mortgage.
To assist people looking to enter the property market in 2020, the Reserve Bank of Australia has dropped the official interest rate to just 0.25%. Furthermore, the RBA has indicated that they do not intend on raising this rate until the economy shows signs of improvement.
If you buy a property in Spring 2020, you will save a considerable amount of money in interest fees over the term of your loan. Just imagine what you could do with the savings….
Stamp duty exemptions on new properties
One of the most significant expenses associated with purchasing a property is stamp duty. In addition to saving the 20% deposit, buyers need to find thousands of dollars extra to pay stamp duty. Unsurprisingly, this can be a barrier to many would-be home owners from buying a property.
Thanks to the NSW Government, from August this year, first home buyers looking to purchase a property valued at up to $800K have NO stamp duty to pay. If the property is valued between $800K to $1 million, stamp duty has been substantially reduced. However, these thresholds only apply to first home buyers who purchase a new property. If your first purchase is a pre-owned home, you canavoid paying stamp duty if the property is valued up to $650,000. For homes between $650,000 and $800,000, first home buyers do qualify for a discount on their stamp duty.
Imagine purchasing an immaculately crafted new property and saving thousands of dollars on stamp duty. Well, now you can. However, you’ll need to act soon, as this fantastic government incentive is only expected to last until August 2021.
First Home Owners Grant (New Homes) Scheme (FHOG)
This is another government incentive to support first home buyers looking to buy a new property. Under this scheme, first home buyers can be eligible to receive a $10K grant if they purchase a recently completed property valued at up to $600K.
It’s not everyday that you get paid $10K just for buying a brand new apartment!
First Home Loan Deposit Scheme (FHLDS)
The First Home Loan Deposit Scheme supports eligible first home buyers to purchase their home sooner. This Australian Government scheme helps purchasers with a guarantee of up to 15% of the purchase price towards your deposit. Under this program, buyers can purchase a property having saved as little as 5% deposit and still avoid paying thousands in Loan Mortgage Insurance!
The scheme is open to singles and couples looking to buy their first home as an owner-occupier. There are income and other eligibility requirements to participate in this scheme including purchase price limits of $700,000 for a property in Sydney.
2020 is the year to buy your new home or investment!
As you can see, 2020 is presenting lots of good reasons to purchase a new property. As an industry-leading developer/builder, Deicorp sets the standard in quality and residential apartment living. If you are looking to buy a beautifully appointed apartment in a thriving new community, why not call us today!