Buying your first home is an exciting goal, but it can be challenging, and it makes sense to use all the help you can get to make your dream a reality. Fortunately, in 2025, there are more options than ever for buyers looking to secure their first home.

As of 2025, these support measures are set to evolve further, with new initiatives like the Help to Buy Scheme coming into play. Here’s a breakdown of the key government programs currently available, and the upcoming changes you should know about.

First Home Guarantee (FHBG)

The First Home Guarantee allows eligible buyers to purchase a home with a deposit as low as 5%  without needing to pay for Lenders Mortgage Insurance (LMI). This is a significant benefit because LMI can add thousands of dollars to your upfront costs, making homeownership more expensive than it needs to be.

Key features:

• Deposit as low as 5%
• No Lenders Mortgage Insurance (LMI)
• Available for both new and existing homes

Income and property price caps apply, so it’s important to check if you qualify.

This scheme is particularly helpful if you’re struggling to save the typical 20 per cent deposit often required by traditional lenders. If you’re a single buyer, you are eligible for this scheme, as well as couples or families.

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First Home Super Saver Scheme (FHSSS)

The First Home Super Saver Scheme allows you to use some of your super savings to help fund your first home. The government lets you withdraw up to $50,000 (for individuals, or $100,000 for couples) from your superannuation account for your first home deposit, all while taking advantage of the concessional tax treatment that applies to super contributions.

How it works:

• You can make voluntary contributions to your super, and once they’re saved in your fund, you can apply to withdraw the amount to use toward your first home.
• You will need to be purchasing a home to live in and the property must be located within Australia.
• The maximum contribution that can be withdrawn is $15,000 per financial year, up to a total of $50,000 across multiple years.

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First Home Owner Grant (FHOG)

While not a scheme aimed at helping with deposits directly, the First Home Owner Grant (FHOG) is a one-off payment designed to assist first-time homebuyers with the costs associated with purchasing a new home. The amount varies by state and territory, generally ranging from $10,000 to $20,000. The FHOG is available to those purchasing newly built homes or homes that have never been sold before and there are property price caps and income thresholds to consider.

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Stamp duty concessions and exemptions

Stamp duty is one of the largest costs associated with purchasing a property, and it can often be a hurdle for first-time buyers. Many states offer stamp duty concessions or exemptions for first home buyers. Each state and territory has its own rules, so check the specific conditions in your area to see how much you might be able to save.

Shared equity schemes and the upcoming Help to Buy

Some states and territories have shared equity schemes, which are a great option if you’re struggling to come up with a large deposit. These programs allow you to co-own a property with the government or a private entity, making it easier to get into the market with a lower deposit.

In a new initiative by the Labor government, the ‘Help to Buy’ scheme, passed by the Australian Parliament in November 2024, will allow eligible lower-income first home buyers to co-purchase a property with the government using a deposit of as little as 2 per cent. The scheme’s exact start date is still to be determined.

Buying your first home can be easier with the right support and there are many ways to make your homeownership dreams come true. The key is to understand what’s available, determine your eligibility, and take full advantage of the assistance on offer.

It’s worth talking to us to make sure you’re making the most of all the opportunities out there. With a little research and planning, you could be stepping into your very first home sooner than you think!

Thinking about buying your first home? Exciting times are ahead! However, it’s essential to understand how your financial behaviour can influence your chances of securing a home loan.

Lenders scrutinise various aspects of your financial life to identify the risk involved in lending to you, and certain habits you may not even think are problematic can raise red flags.

Let’s look at what behaviours lenders are watching so you can maximise your chances of getting the best possible loan.

Your spending

While treating yourself occasionally is important, excessive spending on luxury items can be a concern for lenders. If your bank statements show regular large purchases, dining out frequently, or indulging in expensive hobbies that aren’t consistent with your income, lenders may perceive you as a higher risk. They want to see that you can manage your finances responsibly, so it’s wise to keep an eye on your discretionary spending as you prepare to apply for a loan.

Your savings

Building a solid savings buffer is crucial for homebuyers, especially when it comes to making a deposit. If you frequently dip into your savings for everyday expenses or impulsive purchases, this could raise eyebrows with lenders.

Lenders also look for a pattern of regular saving and sustained growth over time so if you’ve received a large bonus at work, a financial gift or inheritance, bear in mind that it may not necessarily be viewed favourably by a potential lender unless you can also demonstrate your capacity to save – and to meet the loan repayments.

Your credit score

Lenders will review your credit file to see your history of credit usage and repayment behaviour so take the time to review your credit report and correct any inaccuracies. You are entitled to one free credit report per year.

Your credit card use plays a big role in determining your credit score. If you carry high balances close to your credit limits, this can be viewed negatively by lenders. Aim to keep your credit use below 30 per cent and try to pay down any outstanding balances. Not only does this improve your credit score, it also demonstrates to lenders that you are responsible with your credit.

Having several store credit cards can hurt your credit score. While these cards may offer tempting discounts, they often come with high-interest rates and lenders view multiple credit accounts as a potential risk factor, suggesting you may struggle to manage your finances effectively. If you have store cards, consider consolidating them or paying them off to improve your financial profile.

Your debt management

Being proactive about managing debt can help you present a stronger application. Red flags for lenders include the obvious ones like court judgements, bankruptcies, and defaults. But more innocent things such as multiple credit enquiries (often just shopping around or chasing sign on bonuses for credit cards) or credit with some types of lenders, can lead to questions or even a decline.

While Buy Now, Pay Later (BNPL) services have gained popularity, it’s important to understand that the Australian Prudential Regulation Authority (APRA) now requires BNPL debt as well as HECs-HELP debt to be included in your debt-to-income ratio calculations so it can be wise to avoid BNPL schemes and consider paying down your education debt if possible.

Your income patterns

For those who are self-employed or have commission-based jobs, irregular income can be a significant factor when applying for a home loan. Lenders prefer consistent and stable earnings. If your income varies, work on documenting your earnings over time and consider providing additional financial information to support your application. Having at least two years of tax returns and financial statements can greatly improve your credibility.

The unknowns

Finally, lenders don’t like unknowns. They can scrutinise PayPal transactions and dislike those with vague descriptions which can be associated with gambling or other high risk financial activities.

Frequent cash withdrawals can also make it difficult to trace your spending, raising concerns about what you might be hiding and your ability to manage a home loan. To mitigate this, try to keep your transactions transparent and within a documented spending plan.

Navigating the path to homeownership can be daunting, but understanding and addressing these financial red flags can help. If you’re feeling uncertain about your situation, we can help you present the best possible application to lenders and maximise your chances of securing a home loan with the most favourable terms.

As we move into a brand-new year, many people set their resolutions, and if buying your dream home is what you have set your sights on, with the right strategies and the right mindset you can turn that dream into reality.

Big goals like home ownership call for more than just having the right strategies in place (hello budgeting and getting your financial ducks in a row!) –  they also call for the right mental attitude. Even the best strategies can fall by the wayside if your head is not in the right space.

One way to get motivated and stay true to your goal is to imagine your desired outcome as if it’s already happening. This technique is widely used by athletes, performers, and individuals in various fields to enhance their performance and reach their objectives.

The link between ‘seeing’ success and experiencing success

Harvard physiologist Edmund Jacobson was the first person to discover the link between visualising success and making it happen. Jacobson found that if you imagine yourself lifting an object, you trigger corresponding electrical activity in the muscles involved in the action. So even just by simply thinking about lifting a weight, the muscles that are responsible are activated.

His studies have since been replicated to find correlations between mental rehearsal and success. Everything from shooting that hole in one on the golf course to being the winning bidder for your dream home, can be enhanced through the process of visualisation.

The benefits in visualising the ideal home

Visualisation works because it engages both the conscious and subconscious mind. When you visualise the home you want to buy – right down to the view from the windows as you walk in the door and your furniture in the lounge room – your brain begins to recognise it as a reality, which can increase your motivation and determination, as you put in place the financial systems to help you get a deposit together.

Visualisation can also help you to focus on the specific attributes you want in your new house and the lifestyle you aspire to have and can be useful to sort out the ‘nice to haves’ from the essentials.

Ready to get started?

Set clear goals

As a starting point it’s important to establish clear, specific goals for your home purchase. Ask yourself:

• What type of home do I want? (e.g., single-family, condo, townhouse)
• In which neighbourhood or city do I want to live?
• What is my budget?
• What are my must-haves? (e.g., number of bedrooms, outdoor space, proximity to schools)

Writing these goals down will give you a tangible reference point and help you stay focused.

Create a vision board

A vision board is a powerful tool in the visualisation process and can be a source of great inspiration when your motivation is waning. Gather material that represents your dream home and the lifestyle you wish to achieve. You can use physical materials like magazines and a poster board, create a digital version using platforms like Pinterest or simply pop a brochure on the fridge of a property that represents the ideal for you. However you create your visual inspiration it will serve to keep that vision of the home that’s out there for you firmly in your mind.

Take action

Visualisation is a powerful tool, but it must be combined with action to yield results. Use the clarity gained through your visualisation practice to develop a concrete action plan. This could include:

• Assessing your finances
• Determining your budget and how much you’ll need for a deposit
• Getting pre-approved for a mortgage
• Researching neighbourhoods and attending open houses

Set achievable milestones, and regularly check your progress. Celebrate small victories along the way, as they can provide motivation to keep you moving forward.

Stay open to possibilities

While visualisation helps you focus on your specific goals, it’s also important to remain open to new opportunities. The housing market can be unpredictable, and you may encounter options that you hadn’t considered. Trust your instincts and be willing to adapt your vision if necessary.

Remember, visualisation is not about dreaming; it’s about transforming your goals into reality and with the right mindset you’ll be on the right track to achieve your home purchase goals.

The many unpredictable events of 2024 could easily have been disastrous for investment markets. Instead, we saw remarkable resilience and growth despite occasional volatility as investors reacted to the extraordinary times.

While economic growth in Australia and overseas was underwhelming, share markets rode out the ups and downs to finish 2024 strongly. 2024 was the ‘super election year’, when almost 2.5 billion people in 70 countries voted. One result that has captured the attention of governments and analysts around the world is Donald Trump’s return to office in the United States. He has promised massive tariffs, tax cuts and increased spending on defence. All measures are likely to increase inflation and budget deficits which will affect global markets and economies.

Continuing geopolitical upheaval also marked the year. Tension in the Middle East grew as Israel expanded its campaign and European Union economies came under increased pressure when Ukraine stopped the flow of Russian gas.

The US dollar ended the year on a two-year high but that, and a weakening Chinese Yuan, led to a two-year low for the Australian dollar, which ended the year just below 62 US cents.

Cost of living falls but interest rates steady

Around the world, interest rates fell during the year but in Australia, after five interest rate increases in 2023, the Reserve Bank (RBA) held steady at 4.35%, believing inflation is still too high.

Nonetheless, the cost of living has fallen significantly, down to 2.8% in the September quarter from a high of 7.8% two years ago and 3.8% in the June quarter.

Falls in electricity and petrol prices contributed to the easing.

Australia’s economy grew by 0.8% in the three quarters to the end of September – it’s slowest in decades.

House prices mixed across the country

The housing market appeared to cool by the end of the year with average national home values falling by 0.1% in December to a median of $815,000.

CoreLogic’s Home Value Index data shows four of the eight capitals recording a decline in values between July and December. These included Melbourne, Sydney, Hobart and Canberra. While in Perth, Brisbane, Adelaide and Darwin, home values increased.

Share markets survive and prosper

Global share markets were unsinkable in a year of stormy economic and political conditions.

The Nasdaq surged more than 30 per cent for the year. The S&P 500 was up 25% – pushed along by the ‘magnificent seven’ tech stocks – and the Dow rose 14%.

Although not quite in the same league, the ASX performed strongly, recording 24 new record highs during 2024. The S&P/ASX 200 closed the year at 8159, up 7.5%, with some analysts predicting 2025 will close around 8800.

Commodities

Gold came into its own as a safe haven for those concerned about events around the globe, reaching an all-time high in October and adding more than 28% for the year.

Oil prices were subdued with investors cautious about a glut, the risks of wider conflict in the Middle East, the war in Ukraine and the change of government in the US. Although there is some optimism for improved growth in China in 2025.

Iron ore prices have continued to decline, now down to about half of the peak US$200 a tonne in 2021.

Looking ahead

Economists’ forecasts vary on the timing of a cut in interest rates in 2025 but some believe there will be as many as four cuts, reducing the rate to 3.35% by year end.

Share price volatility is expected to continue as investors roll with the global political and economic punches and the upcoming Australian Federal Election is likely to introduce uncertainty until the results are in.

If you’d like to review your goals for the coming year in the light of recent and expected developments, don’t hesitate to get in touch.

Note: all share market figures are live prices as at 31 December 2023 and 2024 sourced from: https://tradingeconomics.com/stocks.

There is no debate that Australians love investing in property. The value of Australian residential real estate at the end of August 2024 was an estimated $10.95 trillion.

Some love it so much that they believe property is a better option for providing a retirement income. They see a bricks and mortar investment as a more tangible and solid approach than say, superannuation, preferring to take their super as a lump sum on retirement to buy property. They may also choose to invest a windfall, such as an inheritance, or the proceeds from downsizing the family home, in property instead of their super.

So, given that a retired couple above age 65 needs an estimated yearly income $73,337 to lead a comfortable lifestyle, could a property investment do the job?

While it’s true that a sizeable property portfolio could deliver rental income to equal a super pension, it might mean missing out on some useful benefits.

After all, super is a retirement savings structure with significant tax advantages. It also has the flexibility to provide investments in a range of different asset classes, including property.

Meanwhile, super fund performance has, generally speaking, outstripped house price movements over the past decade. Super funds (invested in an all-growth category) returned an annual average of 9.1% during that time while average house prices in Australian capital cities grew 6.5% per year over the same period.

Not that past performance can give you any guarantees about what will happen in the future. Indeed, the average numbers smooth out the years of high returns and the years of negative returns. More important considerations in making an informed decision are your financial goals, your investment timeframe and how much risk you’re comfortable with.

Liquidity

One of the most significant differences between super and property investments is liquidity, or how quickly you can convert your investment to cash.

With super, assuming you’re eligible, funds can be accessed relatively easily and quickly. On the other hand, if your wealth is tied up in property it may take some time to sell or it may sell at a lower price.

Nonetheless, market cycles affect both property and super investments. They can be affected by volatile conditions and deliver negative returns just at the time you need access to a lump sum.

Long-term investing

Superannuation is designed for long-term growth, often spanning decades as you accumulate wealth over your working life. The magic of compounding interest can lead to substantial growth over time, depending on your investment options and the state of the market.

Property investments, on the other hand, can be invested for short, medium, and long-term growth depending on the suburb, the street, and the type of house you invest in. Of course, there are additional costs in buying a property (such as stamp duty) plus costs in selling (including capital gains tax). If there’s a mortgage over the property, you’ll need to factor in the additional costs of repayments and interest (bearing in mind that interest on investment properties is tax deductible).

Risk appetite

Investors’ attitudes towards risk also play a role in choosing between super and property.

Superannuation funds can be diversified across various asset classes, which helps to reduce risk. But property investments expose investors to a single market meaning that while there might be a big benefit from an upswing, any downturn may be a blow to a portfolio.

Making an informed choice

Ultimately, any decision between superannuation and property should align with individual financial goals, risk tolerance, and investment strategies. And, of course, it doesn’t need to be one or the other – many choose to rely on their super while also holding investment property so it’s best to understand how super and property can complement each other in a well-rounded retirement plan.

We’d be happy to help you analyse your retirement income strategy to develop a plan that works for you.

Australian share prices have seen record highs in 2024 after a sluggish couple of years.

The S&P ASX200 index added just under 7% in the 10 months to October 31 closing at 8160. It reached its previous all-time high of 8355 just two weeks before.

So, if you were invested in an index fund or a basket of shares mirroring the ASX200 for the entire period, it’s likely you would have added some value to your portfolio.

Over the course of the year, the index has ebbed and flowed, recording several all-time highs and some jarring notes in response to global events.

Geopolitical tensions have also played a part in market skittishness as the wars in the Middle East and Ukraine continue and economists argue about the future impact on Australia of a Trump presidency.

US share prices surged the day after Donald Trump’s election in what many saw as a positive reaction to the returning President’s policies. Since then, prices have declined in a not-unexpected correction. Various analysts are predicting future volatility as markets respond to the proposed policies including tariffs and mass deportations promised by the President-elect.

These ups and downs in prices can have investors scurrying to hit the ‘buy’ or ‘sell’ buttons. They may be desperate to save further losses when share prices are falling rapidly or wanting to cash in on a rising market. Meanwhile, those with lump sums to invest may delay, trying to pick the time when prices are lowest.

Timing the market

It’s a strategy – known as timing the market – that may work for some, particularly if you need access to your investment in the short term. But, for mid- to long-term investors, it’s generally accepted to be problematic.

To begin with, predicting the next market movement is extremely difficult – even for experienced investors – because of the endless factors that can influence the markets.

Reacting to major market movements by selling or keeping a lump sum in cash until ‘the time is right’ means you run the risk of missing the market’s best days and reducing your overall return.

Countless studies show that better long-term results are achieved by consistent investing over time.

In Australia, $10,000 invested in the ASX/S&P 200 during the 20 years to October 2024 would have increased to $60,777. But, if you had missed the 10 best days during that time, your total investment would be just $36,014.

Dollar cost averaging

One way of removing the emotion and guesswork is to consider investing at regular intervals over time, ignoring any market signals, in a strategy known as ‘dollar cost averaging’.

The strategy works best if you are investing over the medium to long term because it helps to smooth out the price peaks and troughs.

In fact, compulsory superannuation paid by employers is a form of dollar cost averaging. Smaller, regular amounts are invested automatically, regardless of market movements and, over time, the investment grows.

However, the jury is out on whether dollar cost averaging is a useful strategy when you have a lump sum in cash to invest.

Some advocates of dollar cost averaging argue that there’s a better return because you reduce the risk of making a large investment just before markets plunge.

Those opposed to the strategy for lump sum investing say that, with a lump sum sitting in a bank account as you chip away at regular stock purchases, there is a risk that you will miss the best of the market.

A 2023 study found that investing a lump sum in the markets at once over the long term delivers a better return than a dollar cost averaging strategy.

So, avoid the risks of timing the market and consider whether dollar cost averaging might be an appropriate strategy for you.

We’d be happy to discuss how best to ensure your regular investing strategy or investment of a lump sum, takes account of future market movements and volatility.