It can be quite difficult to save up money to buy your very first home. Your budget is already stretched as it is for your utilities, groceries, and your other expenses, that shelling out some more cash for your savings might seem like an impossible task.
However, the great thing is that Australians can enjoy what is called the First Home Savers Account (FSHA). Launched in 2008, it provides first time home buyers with a simple way to save up to buy their first property with an added benefit of low taxes. In this article, we're going to give you an overview of the FSHA and how you may benefit from it.
Basically, the FSHA provides a 17% co-contribution for every dollar that you save to buy your first home. In 2010-2011, the maximum annual government contribution was at $935, based on 17% of $5,500. What's more is that the government won't tax you for your savings.
As with the FHOG, every applicant of the FSHA must meet certain requirements to be able to open an account. The applicant:
Please note that while the FHSA functions like a regular savings account, it has several differences with the latter, such as:
With these in mind, you should keep a separate savings account if you wish to have quick and easy access to your funds. Use the FHSA only for the purpose of saving money to buy your first home.
When it comes to buying a home, you deserve to get only the best deal for you. That is why we recommend that you contact our consultants at Rate Detective. They will put your personal circumstances into consideration and provide you with rate comparisons of Australia's top lenders. This ensures that you get a home loan that truly fits your budget and lifestyle.