News.com Australia: First-time homebuyer savings account demand reduced by nearly 8%
Sydney Today, April 4th, Australian Eastern Time, the number of first-time homebuyers’ savings accounts has fallen sharply, but the savings balance has increased significantly.
The latest data from the Australian Prudential Regulation Authority shows that the number of new savings accounts for first-time home buyers opened in the last quarter of last year was 800, a sharp decrease from 2011 in the first quarter of 4500. However, the average balance was A$8230, the highest for the year, which was a significant increase from A$7633 in the third quarter.
Kara Burgess works as a human resources manager in a company. At the age of 29, she opened a new First Home Buyer Savings Account (FHSA) last year. She said: “I hope to deposit 6 to 7 Australian dollars soon. I am now at least every month Deposit 1000 Australian dollars, plus various bonuses."
But this type of account also has some restrictions. You must deposit at least A$1000 per year for four consecutive years. The upper limit of the account is A$8.5. Australia's two largest banks-ANZ and Commonwealth Bank used to provide such accounts, but they have now been cancelled. There are currently 15 banks across the country that provide such accounts, including Teacher Mutual Bank.
CEO Steve James said that they will provide a lot of incentives for first-time homebuyers who don’t have a savings account. He said: “FHSA is a magical account. They can deposit funds and plan for the future. We provide about 1100 people. After opening this type of account, their accumulated deposits are approximately A$1000 million, and the average balance of the account is between A$1 and A$1.1."
Paul Smith, a spokesperson for Loan Market, said: “People’s attitude towards this type of account is “half of right and wrong”; because the government can provide you with a 5500% bonus for your first deposit of A$17 each year, and you can also receive from the bank. This can indeed encourage people to save to buy a house or do other things. However, if you open an FHSA, but don’t want to buy a house later, then you can’t withdraw the money, you can only transfer the money to yours In the pension account." (Wendy)
English version: http://www.news.com.au/money/property/first-home-savers-focus-on-balance/story-e6frfmd0-1226326243679