New legislation proposed in the 2017 Federal Budget will give young Australians looking to buy their first home the opportunity to be outbid by $120,000 instead of $150,000.
Treasurer Scott Morrison described the measure – which will mean prospective first home buyers can save up to $30,000 of their super – as a ‘leg-up to young Aussies’. “It’s just the boost Millennials need to continue to miss out at auctions”.
He said first home buyers could now approach the market with renewed confidence. “If your budget was $700,000, it can now be $730,000 – a little extra ammunition when you go to buy that one-bedder in outer Sydney that’ll eventually sell to an investor for $1.2 million”.
The $30,000 figure was based on the typical amount needed to put a 10% deposit on a small 1-bedroom cupboard in suburban Melbourne.