Your guide to the First Home Owners Grant
Are you thinking about purchasing your first home? If you have started looking into your options, then you definitely would have come across the First Home Owners Grant (FHOG). But do you know exactly what it is and how it can help you get into your first home? In this blog we will explain all the ins and outs of the FHOG and how it can help you!
What is the First Home Owners Grant (FHOG)?
The First Home Owners Grant is a government initiative to encourage Australians to purchase property. It is basically a one-off grant, that you never have to pay back, that is payable to eligible first home owners to assist them to purchase their first property. It started in July 2000 to offset the effect that that newly-introduced GST was having on the property market and to encourage investment in property. The FHOG is a national scheme that is funded by each state, and so each state has a unique offer.
How does it vary state by state?
As mentioned, the conditions and amounts of the grant vary state by state and there are additional conditions concerning eligibility that apply, but here is the basic breakdown of the grant per state. In all below breakdowns, a “new” home means a home that has either been built, or bought off-the-plan, or one that has never been occupied or sold as a new home previously.
In WA, the FHOG is a one-off payment of $10,000 that is applicable to those who are building their first home; unfortunately the grant is not applicable to established homes. It is only applicable to homes where the value of the land and building (or house and land package) is under $750,000 if you live below the 26th parallel (south of Shark Bay) or under $1,000,000 if you live above the 26th parallel (north of Shark Bay). Stamp duty for first home buyers is also waived for homes of up to $530,000 in value or up to $400,000 for vacant land. For further information and eligibility requirements, please click here. http://www.finance.wa.gov.au/cms/State_Revenue/FHOG/About_the_First_Home...
In Vic, there are a couple of options; if you are buying or building in metropolitan Vic, then you will be eligible for a FHOG of $10,000, but if you are buying or building in regional Vic, then the grant doubles to $20,000! If you are buying an existing home, then it must be “new” and must be less than 5 years old. For further information and eligibility requirements, please click here.
In Queensland, the FHOG is $15,000 towards building or buying your first “new” home, unit or townhouse, as long as the property value is less than $750,000. For further information and eligibility requirements, please click here.
New South Wales
In NSW, you are eligible for a $10,000 FHOG if you are building or purchasing a “new” home that is worth less that $750,000. If instead, you are wanting to buy an older, established property, then you could be eligible for a full or partial exemption on stamp duty, provided the home is valued at less than $800,000. For further information and eligibility requirements, please click here.
In SA, you could be eligible for a grant of $15,000 if you are building or buying a home that has previously been unoccupied or sold, or has undergone a substantial renovation. For further information and eligibility requirements, please click here.
In Tasmania, if you build or purchase your “new” home before 30th of June 2019, you will be eligible for a FHOG of $20,000. If you build or buy after that date, then the grant is reduced to $10,000. For further information and eligibility requirements, please click here.
Australian Capital Territory
If you are in the ACT, you only have until the 30th of June 2019 to take advantage of the $7,000 First Home Owners Grant! If you are planning on buying or building a “new” home, a substantially renovated home or an off-the-plan home that is valued at less than $750,000 then you’d better get cracking! For further information and eligibility requirements, please click here.
In you are in the NT, you have a big range of options as a first home buyer! If you are building or buying a “new” home, the you can be eligible for a $26,000 FHOG as well as a grant of up to $2,000 for the purchase of household goods!
If you are buying an established home up to the value of $650,000, then you can apply for up to $23,928.60 off stamp duty and you can also you can apply for a grant of up to $10,000 to renovate or improve your new home. There are also additional grants that you can apply for if you are eligible, for further information and eligibility requirements, please click here.
How do I find out if I am eligible?
Across all states, to be eligible, you must be an Australian citizen or permanent resident, at least 18 and have never bought or built your own home before. You must also be intending to live in the home for a continuous period of at least six months within 12 months of settlement. If you are applying with another person, then this applies to them as well. Because the conditions do vary substantially per state, for further eligibility conditions applicable to your state, please click the appropriate link above.
How do I apply?
Each state has its own application process, so again, check out the links above applicable for your state to find out the first steps to take.
Hopefully this has helped you understand what the First Home Owners Grant is and how it works, and you should have a basic idea now if you could be eligible, but make sure you investigate your options thoroughly to make sure that you take advantage of all the grants you are eligible for!
For more information about how you can take the first steps on the journey to your first home or for assistance in finding out if you qualify for a First Home Owners Grant, get in touch with the first home experts at Bluebay Home Loans on 1300 258 229