Is there a catch or is this a good news story?
The removal of the first time home buyers grant for existing homes makes it so much more difficult to buy your first property.....this $5000 will help with the stamp duty.
Credit Union SA launches $5000 grant for first homebuyers
May 1, 2016 1:49pmTOM BOWDENISABELLA FOWLERThe Advertiser
Matt Axford and Ellie Meich are looking to buy their first home and say they will benefit from the grant. Pic: Tait Schmaal
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Credit Union SA chief executive Grant Strawbridge said the customer-owned financial institution developed the $5000 grant to help South Australians achieve home ownership.
“This is the biggest purchase that most of us will ever make, and our $5000 first-homebuyers’ grant allows people to be informed and in control of this major investment decision in the property market,” Mr Strawbridge said.
“The first-homebuyer segment represents about 15 per cent of all loan settlements in South Australia annually, and this ongoing opportunity offers this group a practical way to help them into their own home.”
Mr Strawbridge said the changing conditions of South Australia’s first homeowner grants in 2014 had made home ownership harder for would-be buyers.
State Government first-homeowner grants of up to $15,000 exist for buyers of new homes in SA but grants for the purchase of established homes were abolished in 2014.
Credit Union SA’s $5000 grant applies to South Australian home buyers taking out a mortgage of at least $200,000, who have never owned a property in Australia before.
“It’s very difficult to get into the market and we feel this will be a good start for people to get in and buy their first home and we think it will strengthen the state as well because getting more people into the housing market and spending, developing and growing, it’s got to be good for everybody,” Mr Strawbridge said.
Real Estate Institute of South Australia chief executive officer Greg Troughton praised the initiative.
“I love it when the providers of funds for buying houses get creative with their marketing and I think that’s a wonderful initiative,” Mr Troughton said.
“It will be interesting to see how it gets picked up by the general community.”
Mr Troughton said he hoped the offer would create competition among lenders, which in turn would increase buyer competition in the marketplace.
“With all things being equal not only would the Real Estate Institute be quite happy with that sort of activity going on, but so would the Treasurer no doubt,” Mr Troughton said.
Mr Troughton said widespread adoption of the grant had the potential to greatly benefit Adelaide’s suburbs and regional areas.
“This means people can look far and wide and I look forward to seeing what competition comes out of this because it sounds like a wonderful initiative,” Mr Troughton said.
“I am pleased to see the banking fraternity, and on this occasion credit unions, are showing the leadership that is sadly lacking when it comes to Government of all persuasions in regards to getting people in homes,” Mr Troughton said.
“It’s good that the credit providers are willing to step up where government has failed.”
For home hunters Matt Axford, 24, and Ellie Meich, 21, who are searching for a property to renovate in the western suburbs, the $5000 bonus has provided peace of mind.
“We’ve become much more serious about looking with the grant, it seemed a bit daunting without it,” Mr Axford said.
“Houses are getting more and more expensive, and with fulltime work, study and wanting to maintain a social life it’s hard to save up enough. The grant just takes some of the pressure off, and means we can aim a bit higher for a property that will be a good investment for the future.”