The Australian national government scrapped the First Home Saver Accounts scheme in the 2014 budget. Many first home owners wonder about the new rules.

Stirling, Western Australia -- (SBWIRE) -- 06/30/2014 -- The Abbott government officially decided to remove the First Home Saver Accounts scheme from its 2014 budget. The decision was made due to low initial interest from consumers. Only 46,000 accounts were opened in total by the end of 2013.

The balance across all the accounts exceeded $520 million.

President Peter Bushby of the Real Estate Institute of Australia (REIA) remarked that he was disappointed with the decision to scrap this scheme instead of simply reviewing and improving upon it.

"With homeownership in Australia declining and first home buyers finding it increasing difficult to enter the housing market, this will not help the situation," he stated.

Advice for First Home Saver Account Owners
This recent budgetary change proved to be confusing for current account owners who are unsure what will happen to their accounts. Previously, savers who opened these first home owner accounts and deposited at least $6,000 would receive a government up to $1,020. They also received tax concessions.

The scheme was designed so that money could only be withdrawn when savers were ready to pay for their first home. Savers must understand the new rules to decide what to do with the money in their accounts.

New Account Regulations
First home saver accounts will completely cease to exist starting on July 1, 2015. Current account owners will still be able to withdraw their money after that date. Current account owners can still earn government co-contributions on deposits, but only until this July.

Anyone planning to open a First Home Saver Account after May 13, 2014 will be ineligible for the government money or tax concessions. After July 1, 2015, there will be no more tax concessions at all. Until that time, the tax rate on any interest earned in the saver account will be 15 per cent.

Treasurer Joe Hockey clarified that after the abolition of the scheme, the First Home Saver Accounts would be treated like any other account.

First Home Ownership
Even if there are no longer accounts specifically for first time home owners, there are plenty of other ways for first time buyers to finance their homes. Government grants and stamp duty concessions vary from state to state. The first step is savings, whether or not that savings is backed by government contributions.

Prospective first time home buyers must carefully understand their financing options before purchasing their dream home.

About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.

Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.

Aveling Homes Contact Information
24/7 Metro Sales: (08) 6144 1000

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

With lending margins at the top four Australian banks headed towards an all time low, interest margins are down. Australian banks have turned to mortgages and consumer businesses to generate up to 40% of their earnings.

Stirling, Australia -- (SBWIRE) -- 06/12/2014 -- The top four Australian banks have reported extremely low lending margins in 2014. They are slowly nearing the all-time low of 2.05 per cent in 2008. According to PwC, Australia's Big Four Banks dropped 5 basis points to 2.08 per cent over the past six months.

National Australia Bank is the largest lender in Australia, followed closely by the Commonwealth Bank of Australia, Australia and New Zealand Banking Group and Westpac Banking Group.

With competition increasing among the banks, further falls are expected. However, higher mortgage lending is keeping the overall profit margins high for the Big Four. In this hot housing market, mortgage lending contributes up to 40% of big bank earnings.

Mortgage Lending
In the October to March quarter, higher mortgage lending and lower bad debt resulted in a record cash profit of $3.15 billion AUD for National Australia Bank. The strength in housing is expected to continue over the next few years. Homeowners eager to get into the hot housing market will continue borrowing from the top dogs in the banking industry.

There are worries that the recent spikes in housing prices could lead to a credit negative for Australian banks in the coming year. Housing prices have spiked in part due to historically low interest rates set by the reserves.

Home Loans
Recently, many Australian local lenders have reduced their variable home loan interest rates in line with the low national interest. Lenders including Bank of Queensland, Citibank, Homeloans, HSBC, and Westpac have dropped their variable rates up to 0.17% since the beginning of January.

The average rate on variable packages for a $400,000 loan is currently 5.14%.

The competitive market can benefit home buyers who are considering financing options for their new home. Discounted rates can be a solid way to enter the housing market.

At the same time, it is important for home buyers to consider rates and discounts carefully. Variable rates can change over time according to the economy. Each home buyer should determine the risk to decide if low or discounted variable rates fit their personal financial situation.

Determining Risk
Some borrowers assume that bank loyalty will automatically get them the best deals and discounts on home loans. Instead, financial planners advocate searching around for the deal befitting your individual budget. Comparing rates can save a homeowner more than ten thousand dollars over the loan's lifetime.

The Big Four Australian banks offer package variable loans at a discounted rate. However, there may be other variable home loans that are lower than these rates.

Discount rates can be competitive in the current housing market, but they may not be the most competitive in the long run. Discussing risk with a financial planner can help you decide which loans are the best deals in both the short and long-term.

About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.

Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.

Aveling Homes Contact Information
24/7 Metro Sales: (08) 6144 1000

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Research indicates that Australia is headed toward a construction boom. Industry spending on home building appears to be on the rise. Property building is a resourceful solution in Australia, where home prices are surging beyond affordability for many home buyers.

Stirling, Australia -- (SBWIRE) -- 06/12/2014 -- Retail spending and housing construction are two areas that are responding to low Australian interest rates.

The pipeline of proposed property construction in Australia is high. Foreign investors from China and the Gulf have taken a special interest in building properties in the Australian marketplace.

This is due in part to the special visa for foreign investors who bring more than $5 million AUD into the country.

Interest rates remain at their low of 2.5 per cent, making Australia a ripe market for building investment. The total value of projects in Deloitte's investment monitor database for March was $878.8 billion. This figure is up 1.4 per cent from the previous three months.

Projects already under construction or committed totaled $442.3 billion and showed signs of increasing.

Affordable Housing
Indications show that it is getting harder to find affordable housing in Australia's major cities. With the exception of certain inner city suburbs, housing prices have risen continuously over the past year in cities like Sydney, Brisbane, Melbourne, and Perth.

First time home owners in Australia may be taken aback by the high list prices. One of the best ways for first home owners to offset the high cost of housing is to build their own home.

Building in Australia
There are countless benefits to building your own property. In many Australian states, first home owners are eligible for extra grant money if they build their own home. Those grants can be worth as much as $7,000.

Building also allows home owners to choose the perfect location. Cities can be overcrowded, with limited space for building. Home owners who wish to buy an established home can expect to spend innumerable hours looking for the best location. There are many concerns to take into consideration, such as which neighbourhoods are the safest and which have the best access to public transport and amenities.

Smart Financial Investment
Building additionally is a smart financial investment for homeowners. Neighbourhoods that are reasonably priced now can have great growth potential. Plus, building your home will help you save on the inevitable repair costs of old homes. In the current housing market, building can be a smart choice for many people.

About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.

Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.

Aveling Homes Contact Information
24/7 Metro Sales: (08) 6144 1000

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Since 2008, the National Rental Affordability Scheme has encouraged large-scale investment in affordable housing. This scheme addressed the shortage in affordable rental housing by building new dwellings but the Abbott government is primed to scrap this program in the federal budget.

Stirling, Australia -- (SBWIRE) -- 06/12/2014 -- The National Rental Affordability Scheme (NRAS) is primed to be cancelled in the Abbott government's new federal budget.

Prime Minister Kevin Rudd launched the program in 2008 as a social housing project, intended to create low-cost dwellings for city workers. Teachers and child care staff reaped benefits from the program over the last few years.

When asked the reasoning behind this change, Social Services Minister Kevin Andrews remarked, "There has been a poor delivery rate in the NRAS. It was obviously rushed in its design and implementation. It's been used inappropriately for the housing of international students rather than the people it was designed to help."

In addition to providing low cost rental apartments, the scheme also built 20,000 new units and houses over the past 6 years. Many were built or run by community organisations.

Incentives in this program are beneficial to property owners, who received $10,000 per year for each dwelling that was rented out to Australian tenants at a lower rent.

Renting Vs. Home Ownership
Many people prefer to rent a home or apartment instead of purchasing their own home because they believe homeownership is out of reach. Renting seems less risky and more secure, while homeownership sounds like a distant dream.

Yet with the collapse of schemes like NRAS, renting is less rewarding.

Renting is prohibitively expensive in major cities, but many people feel it is the only option. When comparing the overall cost of owning a home to renting, many people get scared away by the home's initial purchase price. Others are worried about the ongoing financial responsibility of a mortgage.

Benefits of Homeownership
Unlike purchasing a home, renting doesn't build wealth. Home owners can proudly flaunt their life's most important asset, while renters have nothing to show for all the money they put into their dwellings. As individuals pay off their mortgages, they can gain wealth in equity.

Monthly rental prices can increase every year, while your monthly mortgage rates can be fixed at the amount that is most comfortable. The price of the property is conversely fixed from the date of purchase. This means by the time a home is paid off, it is often worth more than the original amount put into it. The home can later be resold for a higher initial price, generating wealth for the home owner.

Financing a Home
Everyone's financial situation is different. While homeownership has many more long-term advantages, it requires proper budgeting and planning. Even aside from the NRAS, individual states have schemes including grants and first time home owner benefits that are designed to make property purchases less of a burden.

It is always best to check with a financial advisor or mortgage broker before deciding whether or not to purchase a new home. Contact Aveling Homes to learn about financing options for your first property purchase.

About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.

Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.

Aveling Homes Contact Information
24/7 Sales: (08) 6144 1000

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm