Super news for home buyers
Over May’s first two weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,559 auctions. 1,112 properties sold, 833 at auction, with 448 passed in. 276 properties were sold before auction & 3 properties were sold after auction. The clearance rate averaged 72.5%, down on April’s 76.25%.
With the election happening this Saturday the Coalition is making some great new promises to rev voters up.
First home buyers to access Super
The most attention grabbing promise is letting first home buyers use their Super for a deposit on a home. Granted you’ve saved a 5% deposit on a property, you can then get access to up to 40% of your Super fund, to a maximum of $50,000.
If the home is sold later on the cash must be returned to Super, plus a share of any capital gain. For a couple acting together, the combined $100,000 from their Super will cut years off the time it takes to save for a deposit, or pay off a mortgage. This scheme is scheduled for a July 2023 start. It’s a fantastic leg-up – but only if the Coalition gets back in!
Empty Nesters super deal
Empty nesters aged 55 will be able to swing $300,000 of home sale proceeds straight into superannuation. It’s a stimulus to tempt more empty-nesters to downsize or tree-change, adding to more supply of much needed family homes.
Still cheaper to buy than rent in many suburbs
Although interest rates are on the rise it’s still cheaper to buy a home than rent in some of Melbourne’s more affordable suburbs. In Albion, just 15 km’s from the CBD, a median priced unit of $280,000, at a 90% loan-to value-ratio, means monthly mortgage payments of $1018 compared with $1213 in rent. Travancore, just 5.5 km from the CBD, is $100 cheaper to buy than rent. Notting Hill and Melton South are similar.
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