Government housing announcement - what this means for first home buyers?
On 23 March, the Government announced its housing package aimed at making it easier for first home buyers to get onto the property ladder. There are various sources of information but for ease of reference, here's a summary of the information which may be useful to you.
It’s important to note that Barfoot & Thompson does not assume any responsibility for giving legal or other professional advice and disclaims any liability arising from the use of the information. If you require legal or other expert advice you should seek assistance from a professional adviser.
Of interest to first home buyers are the announcements around the following:
Housing Acceleration Fund
The Housing Acceleration Fund aims to increase the supply of houses and improve affordability for home buyers and renters.
The key components of the Fund are:
An infrastructure fund ($3.8 billion) to unlock a mix of private sector-led and government-led developments in locations facing the biggest housing supply and affordability challenges.
Additional funding for the Land for Housing Programme to accelerate the development of vacant or underutilised Crown-owned land, in order to deliver a broader range of affordable housing options for rental and home ownership.
For further detail see the HUD Fact Sheet here
First Home Loan and Grant
From Thursday, 1 April 2021, the income caps will increase and the house price caps will increase in targeted areas.
The income cap (maximum yearly income before tax) for a single person will increase from $85,000 to $95,000. For two people, it will increase from a combined maximum yearly income before tax of $130,000 to $150,000.
For further detail refer to the HUD Fact Sheet and the Kāinga Ora website.
Additional information and resources:
Official press release
Fact Sheet - First Home Loan and Grant
Fact Sheet - Housing Acceleration Fund
Fact sheet - Proposed changes to the bright-line test (March 2021)
Fact sheet - Proposed changes to interest deductions on residential property income
For any further information or assistance, please feel free to contact your property manager.