As we all know that the Federal government helped about 20,000 people to get a new home by giving only 5% of the total cost. Initially, it was for 10,000 people but after that, the scheme was extended and 10,000 more people were allowed to get homes through the same scheme.
Then, all those people got another benefit from the federal government. The caps on these prices have been increased to $950,000 from $750,000. Josh Frydenberg said that all these decisions are being taken because the residential construction industry is about 5% of the total GDP of Australia.
The extension in this scheme will allow another 10,000 people to get new homes. And the scheme is not only for first home buyers but the whole chain involved in this field will be benefited. The tradies along with builders and construction workers, all will benefit from this scheme.
The government has supported first home buyers in many ways. The Government will start providing other 10,000 homes from October 6, and the homes will be ready before 30 June 2021.
At first, you have to apply for this scheme and the eligible candidates will get homes in the cities of Perth($550,000), Brisbane ($650,000), Melbourne ($850,000), and Sydney ($950,000).
Australia has always been one of the best spots for first home buyers. There are several factors that have made Australia gain this reputation. Due to the Coronavirus COVID-19, the economy faced a very tough situation. But all these schemes are intended to get everything on track now. Lending rates are on record low and the government is providing several other schemes. All these situations when combines together create a huge opportunity for the field of construction.
Due to the pandemic, the economy of Australia has got down to 7%. And, there was another prediction from the National Housing Finance and Investment Commission that the housing demand will fall tremendously over the next 2-3 years. That is the main reason behind launching such schemes.
Take a look at the list of caps increased in different states of Australia:
| State | Capital City | Rest of state |
| NT | $550,000 | N/A |
| ACT | $550,000 | N/A |
| TAS | $550,000 | $400,000 |
| SA | $550,000 | $400,000 |
| WA | $550,000 | $400,000 |
| QLD | $650,000 | $500,000 |
| VIC | $850,000 | $550,000 |
| NSW | $950,000 | $600,000 |