January 2020 | Merrifield Melbourne

First home loan deposit scheme

As of 1 January 2020, the Australian Government launched a new initiative aimed at assisting eligible first home buyers to purchase a property sooner and with less than a 20% deposit saved.

This new initiative is called the First Home Loan Deposit Scheme (FHLDS). Here are the basics.

The Scheme

Under the FHLDS, the Government will provide a guarantee to a participating lender that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5% and avoid paying lenders mortgage insurance.

The amount that will be guaranteed by the Government is the difference between the buyer’s deposit (where it is less than 20% but at least 5%) and 20% of the property’s value. The guarantee will not be provided in cash and is not a deposit payment.

The FHLDS is applicable to house and land purchases as well as off-the-plan purchases and is open to both singles and couples, provided they are both eligible under the FHLDS.

About the Scheme

Eligibility.

A list of criteria needs to be met by first home buyers in order to be eligible for the FHLDS. Some of the criteria include:

Income:
A single applicant’s taxable income for the previous financial year must not be higher than $125,000. For a couple, their combined taxable income for the previous year must not be higher than $200,000.

Citizen Requirement:
The FHLDS is only open to current Australian citizens. The FHLDS is not available to permanent residents who are not Australian citizens.

First Home Buyer:
Anyone applying, whether as a single or a couple, must not have previously owned or held a property interest in Australia.

Deposit Requirement:
You must have at least 5%, but less than 20%, of the property’s value, saved as a deposit.

Owner Occupier Requirement:
The FHLDS has been implemented to support buyers looking to purchase their first home to live in and is not for investment properties. You will need to move into the property within 6 months of settlement or the certificate of occupancy for the property being issued.

Property Value:
If you purchase in Merrifield the total value of the property must not exceed more than $600,000.

This is not a full list of eligibility criteria and various tests apply to confirm purchaser eligibility. To check if you are eligible under the FHLDS, please visit the National Housing Finance and Investment Corporation website at the link below.

Eligibility Criteria

This is not financial or legal advice and you should seek your own independent financial and legal advice prior to applying under the FHLDS.

How to apply.

Applications are made, upon instruction, through one of the 27 participating lenders when you apply for a home loan.

The FHLDS is limited to 10,000 loans for the current financial year and 3,000 people have already been registered, so you’ll need to move quickly if you wish to apply!

The above information is general information only and does not constitute legal or financial advice in any way. The information has not been prepared by Merrifield Corporation but has been obtained from Government and other sources and Merrifield Corporation does not assume responsibility or warrant any of its accuracies and does not accept any liability for any error, discrepancy, negligence or otherwise. You are encouraged to make your own independent legal, financial, investment, business, tax and any other enquiries regarding your own personal financial position, eligibility for the scheme and any other relevant factors and consult the URL webpages referenced above for up-to-date information prior to making any decisions.

Yarra Junction, Truganina, Clyde North among suburbs set for a hot 2020

Picture of St Georges blvd, Merrifield

From an article by Jayitri Smiles, realestate.com.au
Sunday 05 January, 2020

Hospital improvements, booming business parks and level crossing removals are tipped to boost prices across many of Melbourne’s outer suburbs in 2020.

Yarra Junction, Hillside and Truganina are tipped as some of the city’s top performing pockets next year, according to the Real Estate Institute of Victoria.

Clyde North, Lyndhurst and Mickleham have also been put on the peak industry body’s watch list.

Top pick Yarra Junction had its median house price increase 6.5 per cent to $590,000 in the 12 months to September 2019, according to REIV data.

Professionals Yarra Junction sales manager Chris Lord said more buyers would move to the affordable town as prices rose closer to the city.

“The biggest thing affecting us is that first-home buyers and families are getting priced out of the eastern suburbs and moving farther out from Lilydale, Mooroolbark and Croydon to find affordable homes,” Mr Lord said.

“There have been new developments, which lots of families are looking at to get in and buy. But the thing is, supply is not really going to be able to keep up with demand and prices are going to go up.”

Planned upgrades to the town’s sporting precinct, the Yarra Centre, would also attract more families, he added.

New shopping precincts in Hillside and Truganina would bring more buyers to those suburbs, REIV president Leah Calnan said.

“In Hillside, there’s a lot of development, new land releases and infrastructure,” Ms Calnan said.

“A business park in Truganina recently sold for $2 billion, which is one of the city’s biggest projects in the west.”

Pictured left to right: Pinnacle Park at Merrifield and Dulux at Merrifield Business Park

Truganina’s median house price increased 3.6 per cent to $575,000 in the 12 months to September.

Clyde North was a hot spot for buyers who wanted to break into Berwick, OBrien director Darren Hutchins said.

“The suburb abuts Berwick, which is known as the Toorak of the southeast,” Mr Hutchins said.

“It still offers all the good schools, Federation University, Chisholm TAFE and Fountain Gate shopping centre down the road.”

Casey Hospital’s $135 million expansion project was also expected to add value to the area, he said.

In Lyndhurst, level crossing removal works on the Cranbourne line has made living in the outer suburb more appealing, Ms Calnan said.

Meanwhile, Mickleham’s booming population is expected to put pressure on prices.

Hume City council has predicted Mickleham’s population to jump eight times to 27,401 people in the decade to 2026.

Melbourne property prices have been tipped by data firms to soar by as much at 17 per cent in 2020, with population growth, interest rate cuts and looser lending policies adding to demand.

SUBURBS TO WATCH IN 2020:

1. Yarra Junction, median house price $590,000

2. Hillside ($670,000)

3. Truganina ($575,000)

4. Clyde North ($568,250)

5. Lyndhurst ($630,000)

6. Mickleham ($522,500)

Link to full article here.