Govt Employees – How to Increase Your First Home Deposit
Financial Adviser and Mortgage Broker, ROD LINGARD delves into an idea that Government or Semi Government employees can utilise to increase the deposit they have available to buy their first home.
There is no doubt that the recent announcement of the Home Builder Grant has sparked some real interest for those planning on constructing a home.
Combine this with the First Home-Owners Grant, and there is a real opportunity for first home buyers in particular to get some assistance to build a home.
The other avenue of adding to your deposit is a personal favourite that I have written about previously, the First Home Super Saving Scheme (FHSSS).
The FHSSS commenced in July 2017, so it’s now into its third year.
Whist this idea may not assist everyone, for Government or Semi Government employees, it may be a way of adding a little more to their deposit kitty.
So what’s the idea?
Most Government and Semi Government workers make some form of voluntary contribution to super, which is then partially matched by their employer.
Even though many consider it a ‘mandatory contribution’, these contributions to super are eligible for withdrawal under the FHSSS.
Typically, the contribution level is 5% of gross income. So, given we are approaching the third year of the scheme, a Government or Semi Government employee who has been in their job for three years could have some additional funds to use as a deposit for their first home.
This begs the question – is it a good idea to withdraw it?
Like all things financial, the answer is ‘it depends!’
On one hand, taking money out of super will eventually lead to less cash available at retirement, but on the other hand, time spent out of the home ownership market brings its own costs, particularly if the value of homes starts to rise.
Speak with a financial planner who can assist you to understand the pros and cons of accessing the FHSSS.
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If you'd like to have a chat about your personal situation you are welcome to book an obligation free (one hour) consult with me. You can do that by emailing me or giving me a call on M: 0400 160 461.
Rod Lingard is a Mortgage Broker and a Licensed Financial Adviser at Lifestyle Connexion and can be contacted on M: 0400 160 461. Financial Advice is provided by Rod Lingard – Authorised Representative No: 248734 of MASU Financial Management Pty Ltd | AFS Licence Number 231140 ABN: 78 069 358 498.
General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.