The Help to Buy Scheme, your way into the market when everything feels impossible?
The Help to Buy scheme is one of the most significant housing initiatives to roll out in NSW in recent years. Designed to make home ownership more achievable for low to middle income earners, it offers a shared equity pathway that dramatically reduces the upfront cost of buying or building a home.
Buyers purchase or build a home with as little as a 2% deposit. The government then contributes up to:
40% of the purchase price for new homes, or
30% for existing homes.
In exchange, the government holds an equivalent equity share in the property. But it also means buyers can enter the market sooner, avoid Lenders Mortgage Insurance (LMI), and reduce the size of their home loan. All good things considering petrol prices and interest rate rises are affecting everyone’s stress levels.
There are income requirements and caps on the amount of the House purchase or the House and land Package.
For example here in Newcastle and the Lake Macquarie Council areas, the purchase price is capped at $1.3mil while the Hunter is capped at $800,000.
With land prices rising this may seem impossible to achieve, but , there are still some great House and Land packages in Dora Creek and Morisset for $930,000-$960,000 and $1.1mil in Edgeworth and Cameron Park. While Denman in the Hunter is an affordable option at $799,000.
One of the advantages Carnelian has with the Help to Buy Scheme, is being able to organise a Turnkey Build Contract quickly with our Turnkey Builder (1-2 weeks). Compared to big Display Builders who can take up to 2 to 3 months.
A comprehensive build contract is one of the conditions of the scheme.
Building with Help to Buy seems like a sensible option, who doesn’t want a brand new home with your own design details and your own fresh new colour scheme!!
So, if you qualify for the Help To Buy Scheme, having a lower mortgage with the government’s help , may be a great way to step on the property ladder.
If you would like a Build Quote for your block of land or a House and Land Package within the price guidelines, please get in touch on 0402 107 194.
Please note the above is not Financial Advice, please talk to your Mortgage Broker or Bank about your circumstances.