February Newsletter
Many investors will tell you there's no such thing as a free ride. If you want to succeed in property - as with most things in life - it requires commitment, hard work and often sacrifices along the way. But there are plenty of opportunities to receive a helping hand. This is particularly true for homebuyers entering the market for the first time.
In a country where home ownership is still considered the 'great Australian dream', the list of grants and subsidies on offer to homebuyers is extensive. There is, of course, the Federal Government's First Home Owner Grant (FHOG) of $7000, as well as various additional grants available at a state level. (Here's a little known fact: Australians who buy an investment property as their first property may still be entitled to receive the FHOG when they later buy their first home.)
While 'poor affordability' is a regular catchcry, the truth is there's a lot of financial assistance out there for prospective first homebuyers, not only through the FHOG and other state schemes, but also through the First Home Saver Account.
Although handouts such as homebuyer grants have raised the ire of some in the industry who believe they artificially inflate the market to the benefit of sellers and detriment of buyers, our governments continue to roll them out and often extend them beyond their original 'shelf life'. The FHOG is a classic example. It was introduced by the Howard Government in 2000. Almost 12 years on, the grant has been kept in place by successive governments and was even increased through a supplementary grant called the First Home Owner Boost between 2008 and 2009 to $14,000 for purchases of existing properties and $21,000 for newly built homes. Similarly, the Queensland Government recently extended its $10,000 Building Boost to buyers of off-the-plan properties by three months. It was originally due to end in January.
The number of grants, rebates, incentives and tax deductions available - not just to first homebuyers, but also investors, tenants and seniors - is lengthy and complex, so we've done the hard yards for you and uncovered a massive pool of money - more than $575,000 worth - that's there for the taking. Turn to page 32 to find out which opportunities you're eligible for.
Also, don't miss our exciting story on page 24 about the simple investment strategy that's reaping investors returns of up to 20 per cent!
A special welcome to Cherie Barber, a self-made millionaire and renovation queen, who has joined the API team and will be bringing you her best tips each month on 'how to turn real estate trash into large sums of cash'. In her first report written exclusively for API readers, she reveals 10 ways to double or even triple the returns on every dollar you spend!
Eynas Brodie
Editor
