PHOTO: Queenie Tan, 24, (pictured) has shared two tips for first-time buyers trying to enter the property market
- Sydney marketing manager Queenie Tan has shared tips for first home buyers
- Ms Tan, 24, said there are two things she wished she knew before buying a home
- She said first-time buyers do not need a 20 per cent deposit to secure a property
- There are two schemes – one to help save a deposit, another to allow early entry
- The young financial investor shared her advice in a viral video posted on TikTok
A marketing manager has shared her two top tips for first home buyers as they try to plant a foot on Australia’s property ladder.
Queenie Tan, a property investor from Sydney, says despite popular belief, prospective buyers do not need a 20 per cent deposit to secure a home.
In a video posted on Tiktok, the 24-year-old said there are other avenues that are available to help Aussies enter the market with a smaller down payment.
WE DON’T ROAST OUR BEANS UNTIL WE HAVE YOUR ORDER
The two schemes a property investor wish she knew before buying:
First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme (FHLDS) is a federal government initiative to support eligible first home buyers to build or purchase a first home sooner
Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance, however, under the scheme they can purchase or build a new home with a deposit of as little as 5 per cent
This is because the National Housing Finance and Investment Corporation (NHFIC) guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan
10,000 First Home Loan Deposit Scheme places will be available for the 2021-22 financial year from 1 July 2021
There are currently 27 participating lenders offering places under the scheme, and first home buyers must meet eligibility criteria to participate
First Home Buyers Super Saver Scheme
The First Home Super Saver (FHSS) scheme was introduced by the Australian government in 2017 to reduce pressure on housing affordability and allows you to save money for your first home inside your super fund.
You can use this scheme if you are a first home buyer and both of the following apply:
-You either live in the premises you are buying, or intend to as soon as practicable.
-You intend to live in the property for at least six months within the first 12 months you own it, after it is practical to move in.
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years.
You will also receive an amount of earnings that relate to those contributions and must apply for and receive an FHSS determination before signing a contract for your first home or applying for release of your FHSS amounts
Source: FHLDS- www.nhfic.gov.au/ FHSS – www.ato.gov.au/
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