Benefits of First Home Ownership Transform Your Life

From Renter to Owner: How Your First Home Purchase In Australia Can Transform Your Life

Becoming an owner from a renter is like a dream come true. Besides the excitement of being an owner of your home, you come across many growth opportunities ranging from short-term and long-term investment. First-time homeownership transforms your life in both social and financial domains. Mortgage brokers help you shape your dream of buying your first home even if you have limited funds. The success and satisfaction in achieving your investment goals depend upon your approach, understanding the complete process, quality of professional support, and strategy to maximize the value of your investment. This blog presents an overview of buying a home while having limited funds and the benefits that transform your life. 

Is it the right time to invest in purchasing your first home in 2025? Home ownership has been a top desire of a majority of Australians, as it drives in sense of financial security, social benefits, and economic benefits. First-time home buyers come across numerous challenges in buying the homes of liking but data-driven information about the optimal timing for buying a home may help you become owner from renter.  According to a report by Karen Dellow, Senior Data Analyst, “There is a 46% increase in the number of potential buyers believing that prices may continue to rise in the following months”. The property prices are rising despite a cooling period, which means it is an opportunity for first-home buyers to buy at a price lower now than to pay more in the coming year. “The Australian property market is going through a “cooling” period, which is good news for home buyers”- CoreLogic data. 

Don’t hesitate to buy a house now thinking about market conditions and timing. “Waiting comes at a cost.” Rising property prices will make it harder to own a house in future. So, buy it now if you can. Is it easy to buy your first home in Australia? Your buyer’s agent and mortgage loan broker will guide you to decide and do right in a convenient manner. Congratulations on your first home ownership! Now, I will share some secrets that will help you transform your life with extra savings and passive income. 

Tax Benefits for First Home Owners in Australia to Save More and Repay Faster: 

Am I eligible to get extra tax benefits as a first homeowner? What are the tax benefits for first homeowners in Australia? Yes, first homeowners enjoy many economic benefits that transform their lives. Top tax benefits for first homeowners that help them repay loans earlier are- 

1. Negative gearing: It is a tax-saving strategy used by homeowners to offset the loss caused by owning a rental property against the taxable income. If the expenses of the property owning exceed to rental income generated, the homeowner can reduce his tax liability.
2. Capital Gains Tax (CGT) exemption: You are eligible for a CGT exemption if you sell your primary residence. Any profit you get by selling your home is not subjected to CGT.  
3. Depreciation deductions: Homeowners are entitled to claim tax deductions for the natural depreciation of their building structure, fixtures, and fittings 
4. Home office deductions: Working from home makes you eligible to claim a deduction for expenses made to maintain a home office. 
5. Interest deductions: Homeowners are eligible to get a deduction on the interest paid on the mortgage repayment. It is a significant tax benefit.
6. Enhanced Borrowing Power: The existing home can be used as collateral for getting larger loan amounts at more favorable repayment terms.

Apart from tax benefits, you can also leverage the economic benefits of being the first homeowner at the time of purchasing your home because the Australian Government supports eligible home buyers to purchase a home sooner by providing financial benefits under several schemes. Wouldn’t you like to improve the economic benefits of being a homeowner? 

Six Schemes That May Help You Improve Economic Benefits Of Home Ownership 

1. Regional First Home Buyer Guarantee: From July 1, 2024, 10,000 homes have been listed under the RFHBG scheme up to 30 June 2025.
2. The First Home Guarantee (FHBG), is part of the Home Guarantee Scheme: Housing Australia will issue 35,000 guarantees each financial year from 2024-25. 
3. Victorian Homebuyer Fund: Available to permanent Australian citizens not having a home, the scheme allows buyers to buy a home with just a 5% deposit. 
4. First Home Owner Grant: State governments have their own ‘First Home Owner Grant’ schemes but these schemes impose a purchase price limit.
5. First Home Super Saver Scheme: It allows eligible individuals to withdraw up to $50,000 against their voluntary tax contributions. 
6. Stamp Duty Waiver: It allows you to get stamp duty waived off or a concession if the purchased home is priced between $600,001 and $750,000. 

The Social Benefits of Homeownership that Make Your Life Happier: Homeownership improves quality of life, fosters stronger communities, and promotes social interactions. Homeownership shapes a vibrant and thriving society. The top six social benefits experienced by first homeowners are- 

1. Neighborhood Stability: Homeownership comes along with a unique sense of pride that makes homeowners more engaged in communities. 
2. Civic Participation: Homeowners tend to be more involved in local initiatives like community organizations and neighborhood associations. Homeownership develops a sense of responsibility to the community.   
3. Social Networking Opportunities: Homeowners get more opportunities to expand social networks and increase social capital. A strong social network contributes to improved personal well-being besides creating a sense of security within the community.
4. Family Well-being and Educational Stability: Homeownership delivers a positive impact on family well-being and educational stability. Homeownership provides a supportive environment for children to thrive in a consistent schooling system, social environment, and neighborhood. 
5. Improved Health: Homeowners are more likely to have better physical and mental health because of better control over living conditions. Homeowners have the freedom to create a customized living space for a healthy lifestyle.  

Pro-tip: Australia has been promoting homeownership as a part of its housing policy for decades. There are serval state and Govt. run schemes that help aspiring homeowners make their dreams true with limited deposits. Your home loan broker may help you find suitable schemes for first home ownership. The leading mortgage broker Ask Financials may help you make informed financial decisions for your first home purchase by providing data-driven insights about the latest mortgage borrowing practices; You can book your free consulting session