First Home buyer info

[csc]

First home buyer info I came across that isn't being promoted it seems.

http://www.homesaver.treasury.gov.au/content/default.asp

Unsure if its been talked about on S/S previously by first home buyers but having a quick glance it looks like an excellent proposition and should be promoted way more often.

Anyone part of this concept or know more?

I'd be keen to get my kids into this terrific idea and educate them on the benefits of saving for something well worthwhile.

Worth discussing? Just add to the thread.

Cheers.

 

[Douglas Bailey]

What I have trouble understanding with this scheme is why you can't withdraw the funds in the first four years. I'm sure it's great for people who might have just started working at 15 or 16 and won't need to be buying for four years. But for me, when this started, I was about a year away from purchasing so I couldn't afford to lock my money into this account for four years.

 

[sphinx]

4 "financial" years = 2 calendar year + 2 days
If you contribute before the end of this financial year, you can use your money July 2011 (perhaps the time the market has just bottomed or is still crashing).
You don't have to put ALL your planned deposit into it, just enough to get the 17% government contribution.. or the amount you want to minimize tax on interests.

 

[fokas]

4 "financial" years = 2 calendar year + 2 days

Wow I wish I knew that last year.

 

[Peter_Tersteeg]

Four-year savings horizon
* To withdraw their funds, minimum contributions of $1,000 need to be made over the course of at least four separate financial years.

What happens if you find a house within 4 years and you've saved enough for a deposit? Does this mean you can't withdraw the money you've saved?

The Government will contribute 17 per cent on the first $5,000 (indexed) of individual contributions made each year.

* This means an individual contributing $5,000 will receive a Government contribution of $850.

Give the limit the government will continue to contribute to is $75,000, this would mean the government will only ever contribute $12,750. This is starting to look like a replacement for the First Home Owners Grant.

I hate to be skeptical, but I think there's a lot of rules around this which may not help the first home buyer. I've generally found that many first home buyers are able to save their required deposit from scratch within 3-12 months, then they purchase with the assistance of the grant.

It could be a great deal for some people, but it could actually hurt some people if they don't understand the parameters.

Disclaimer: Everything above is my perception reading the government site, and may not be fact.

 

[VBman]

I looked into one of these accounts, and quite frankly, They suck.

Too many restrictions.