Stage Three Tax Cuts 2024-2025: How new changes could benefit first home buyers
Introduction
In today’s blog post, the Stage Three Tax Cuts are once again the topic of discussion.
However, in this post, I will be writing about how first home buyers can benefit from the changes to Australia’s tax system.
Tax cuts are always a big deal – so read on to learn why you should think about getting the changes to work for you.
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In the last blog post, I wrote about how the changes in tax thresholds and tax rates are set to benefit first home buyers – as the extra cash in their bank accounts will give them greater borrowing power.
However, you should note that it is still recommended borrowers not take out a loan that is at their financial maximum.
In the long run, property investors would end up with a better outcome than those who are owner-occupiers if they tested their financial limits.
It is thought that the changes to tax will result in a small improve when it comes to the bottom part of the housing market.
This is because those who are purchasing their first home often face limits when it comes to how much they can borrow.
As aforementioned, first home borrowers will now have slightly more borrowing power due to the cuts.
Houses that are on the less expensive scale will particularly be helped by the tax cuts – however the housing market on the whole will benefit from them.
If you are wondering what the best option is for you, speak to your local mortgage broker for help.
Key points
Below are listed a number of key points to keep in mind if you are a first home buyer and wondering how these latest tax cuts could benefit you.
- Buyers now have greater borrowing power thanks to more savings.
- Whole property market in Australia will be advantaged thanks to the tax cuts.
- Don’t test your financial limits even if you have grown your savings.
- Get export support to make the best choice for you when it comes to purchasing property.
If you have any concerns or queries, it is best to speak to a financial advisor or mortgage broker for guidance.
Conclusion
Ultimately, the Stage Three Tax Cuts might be the small push you need to purchase your first property.
Or, the cuts might help you invest and start your property portfolio at last.
Keep in mind that at the end of the day, if you are unsure what to do – ask for advice.
If you’d like to find out more about the potential benefits the tax changes could provide for you, or have any other financial queries, please contact the AA Finance Solutions team for the support you require.
