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First Home Saver Accounts - Tips for getting more money off the Government

Discussion in 'General Investing Discussion' started by FinSpec, 19th Jun, 2009.

  1. FinSpec

    FinSpec Member

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    Thought that this may be of interest to some people. For more information, follow the link below:

    For more information, visit: First Home Saver Accounts
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    It's like the media is in a long time warp.
    The accounts have been available for almost a year now...
    Apparently only 3000 accounts are opened...Not quite the uptake which was expected...
     
  3. Chris C

    Chris C Well-Known Member

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    That figure will probably jump a lot in June...
     
  4. davo6253

    davo6253 Well-Known Member

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    was interested in this line

    'superannuation providers, life insurers and friendly societies will be able to offer investment-linked accounts. '

    anyone done some investigating as to what sort of set up these accounts would provide? I will be doing some tomorrow :)

    Cheers,
    David
     
  5. Chris C

    Chris C Well-Known Member

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    I think they they were intending for these to be like a super setup where you can choose where you money is invested, ie cash, shares, bonds, property, etc

    That said I has a quick look the other day and couldn't find any of these sorts of accounts. Maybe banks don't think its worth their time.
     
  6. ashwright

    ashwright Well-Known Member

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    I heard that is too expansive to run these accounts. They (banks etc.) have to do a bit of legal work to set them up, and they are treated differently, like super but not super. And for what, the bank will probably have at most $20,000 in the account.

    I don't think it is worth their time to do anything complicated like allowing people to invest in shares.
     
  7. thor80

    thor80 Member

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    It does sound like a good incentive although if you do wish to pull the pin on the whole deal then it seems that you are unable to get the money back. I read somewhere that the money has to go either into super or if you are over 65 then you have access to the money. Is this so??
     
  8. FinSpec

    FinSpec Member

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    Hi everyone,

    Just an update to my last post, while it's not 10% up to date, Choice did a survey on the various First Home Saver Accounts. Here is a link to their information:

    CHOICE - First Home Saver Accounts

    The link is just to get you started. Please note, the providers are changing their rates, terms and conditions all the time - therefore do your research before jumping in.
     
  9. davo6253

    davo6253 Well-Known Member

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    First Home Saver Accounts - July 2008

    This looks like the only list I can find, with Trust (Trust : Home) being the only investment style account versus the numerous bank style deposit accounts. Has anyone had experience with trust? I also hope that a couple more options come out soon! :)

    Cheers,
    David
     
  10. AsxBroker

    AsxBroker Well-Known Member

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    Hi Davo,

    Even though Trust is on the APRA website, it doesn't look like they have issued a product yet (well not on their website just yet). It was very disappointing that there are no other accounts other than bank interest style accounts it would certainly make it more compelling for the long term with other assets available to invest in. The most novel would be investing in residential property (isn't there an index listed on the ASX for this?)

    Cheers,

    Dan

    PS This is general information and not investment advice. Speak to your FPA registered Financial Planner before making an investment decision.
     
  11. davo6253

    davo6253 Well-Known Member

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    Hi Dan,

    Yeah thats what I seemed to find as well. I have sent off an email to them and hopefully they can provide me with some good news, i'll let you know how that goes.

    Another issue, if it turns out there is no investment style option to the FHSA or even if there is, would I be better off investing $5000 and getting the full $850 bonus each year or putting in as much as I can safely spare to take advantage of the tax bonus? My personal situation is I am to save around $1000 a fortnight with no debt apart from HECS which I don't intend to pay back apart from the compulsary amount, I know nobody can give me full blown advice, just what do you think of locking up more than the 5k?

    Cheers,
    David
     
  12. davo6253

    davo6253 Well-Known Member

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    This is the reply I received in regard to whether the product was available, seems they will be accepting the accounts through other institutions. I have sent a reply to see if they can give me an idea of who they will be dealing with.

    Cheers,
    David
     
  13. AsxBroker

    AsxBroker Well-Known Member

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    Hi Davo,

    Sounds like it is going to be re-badged (aka white badging) for those institutions. We'll keep our eyes open for it ;)

    Cheers,

    Dan
     
  14. davo6253

    davo6253 Well-Known Member

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    Yeah thats what I figured. If they don't give me any idea as to who will be offering I might go with AMP as they are quite strong in those style of products, so hopefully they will give the option of something in the future, if not according the rules switching over while not convenient isn't too hard it sounds.

    Cheers,
    David