Every bit helps.
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That was the verdictfrom Hunter first home buyers on Wednesday, as they welcomednews they will be able to access tax breaks to help them save for a deposit.

SAVINGS MOUNTAIN: East Maitland couple Codie Ellicott and Tae Rowsell are struggling to meet the costs of a first home deposit. They say it will be ‘tricky’, even with the tax breaks announced in the budget. Picture: Perry Duffin

But forCodie Ellicott and Tae Rowsell, pulling together the funds to buy in their hometown of East Maitland remainsa daunting prospect.

“I’ve been working full time for three years and my partner for six or seven years,” Ms Ellicott said. “We’ve been saving throughout, but it’s really hard…the investors can usually offer a higher bid than you.”

Under changes announced in the federal budget, from July first home buyers will be able to salary sacrifice up to $30,000 into super for a deposit.

They will be able to withdraw the money from July 2018.

Retirees will be able to divert up to $300,000 from the sale of their family home to superannuation, encouraging them to downsize. Those incentives will come into effect from July 2018.

Agent Chad Dunn of Century 21 Novocastrian said the changes could result in “decent” savings for young buyers, particularly those in the highest marginal tax bracket.

He predicted there could be a short-term cooling in the market while they took advantage of the changes.

“I had 50 groups through a home on Saturday and easily half of those were first home buyers,” he said.

“I think you will see first home buyers go out of the market and stockpile more funds through this system, and probably come back next year.”

Mr Dunn said the changes for retirees could be a “gamechanger”by bringing a surgeof new stock to the market. But he believes it would have been preferableto introduce the changes immediately, rather than waiting for 12 months.

“Right now we have a really limited amount of stock on the market…those stock levels will certainly change next year when that ruling takes place.”

However according to Mr Dunn, one of the biggest pressures on young buyers was overlooked.

“I still believe stamp duty is tipping the scale,” he said. “They’re missing the third prong.”