The First Home Buyers Grant (FHOG), a wad of money!
Yes. The Australian government offered this up to new home buyers to help them get into their own home. This has been with us since July 1, 2000, but since then it has undergone quite a few changes. If in doubt about anything to do with the First Home Buyers Grant, your local real estate agent, conveyancer, or mortgage broker will be able to assist you with any queries you may have.
Here’s what you need to know about the latest changes to the First Home Buyers Grant:
Do I qualify for First Home Buyers Grant?
If you are an Australian citizen or permanent resident and you are building or buying your first property, then you do qualify. However, you must occupy the property as your principal place of residence within 12 months of settlement and live in it continuously for at least six months afterwards. If you move out before that time, then you will be required to repay the grant.
How is the Grant affected when buying with a joint partner, and both partners are first home buyers?
When buying with a joint partner, and neither partner has bought a property before, only a single grant will apply per property.
Does my income affect the Grant?
The grant is not means tested, so your level of income will have no bearing on whether you receive the grant, nor will you have to pay income tax on the grant.
I’m buying an on-site home in a caravan park. Do I still qualify for the Grant?
The grant only applies to homes which are fixed dwellings. If you bought a caravan or an otherwise moveable home, then the grant will not apply.
Is there a price cap on the Grant?
Each state varies in its implementation of the grant. In QLD the cap is $750,000, while in WA the price cap differs depending on where the property is situated. New properties south of the 26th parallel, attract a cap of $750,000, and properties north of the parallel attract a cap of $1 million. SA applies a cap of $575,000, and in the NT there is no limit. Check your state for details.
Do I qualify if I own property in countries other than Australia?
Even if you own or have owned property in other countries, you may still qualify for the First Home Owners Grant, providing you have never owned property in Australia.
What sort of home will I need to buy?
The grant qualifies for homes in Australia which are to be built, and new homes which are already built. Qualifying structures include houses, flats, or any other self-contained fixed dwelling. Homes must also meet the planning standards of the local council, and exact specifications may change from state to state.
Who can help me?
Buying your first home can seem like an impossible hurdle at times, but with a savings plan, and expert advice from your local real estate agent, conveyancer, or mortgage broker it is achievable.
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