September 2020: First Home Loan Deposit Scheme expanded to new builds
The federal government carved out an additional 10,000 places exclusively for newly-built homes. The owner-occupier and investor incentive stacks started to align.
The change
The 2020–21 Budget added a New Home Guarantee tranche: 10,000 places for first-home buyers building or buying new, with 5% deposits and no LMI. Combined with HomeBuilder, the federal policy stack was now explicitly pro–new construction.
The investor read
When the Commonwealth puts $30,000+ of stacked incentives on the buyer side of a new-build transaction, the floor under that asset class hardens. Investors entering the same estates inherit a built-in exit pool of incentivised owner-occupiers.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.