New Delhi: The upcoming Union Budget 2014 might bring cheer to first time home buyers. As per sources the Finance Minister might give concession to first time home buyers in the Union Budget.
The Federal Government has taken the axe to a generous Rudd-era savings scheme for first home buyers, but will lift restrictions on the ability for account holders to access their money.
The Government says it will save $134.3 million over five years by abolishing First Home Savers Accounts, which were introduced in 2008 to help first home buyers save.
The government might also give interest subvention to first time house owners in the Budget, sources said under the interest subvention scheme government will give concession as per the income of the individual, sources further said.
Moreover, the sources added that low cost housing might also get infrastructure status. This will pave the way for concession in financing of such houses.
Eligibility for the 17 per cent government contribution will stop from the start of July this year.
First Home Savers Account holders were only able to access their funds after four years and only for the purchase of a first home, to put towards an approved mortgage or to contribute to their superannuation.
But as of July 2015, they will be able to withdraw their funds without such restrictions.
Bureau Report
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