Everything You Need To Know About First Home Owner Grants In Australia

First Home Owner Grants – www.pumpedonproperty.com

Struggling to save a deposit for your first home?

You’re not alone!

According to an article by Asia-Pacific Banking and Finance, saving a deposit, housing affordability and job security are the biggest concerns facing first home buyers.

What’s the good news?

There are still First Home Owners Grants available in New South Wales, Queensland, Victoria, Western Australia, Tasmania and South Australia.

The Beginners Guide To Property Investment In Australia.

What’s the catch?

Many of the First Home Owner Grants on existing dwellings have dried up.

This said, there are still fantastic First Home Owner Grants available on new homes, apartments, units and townhouses up for grabs across Australia. There are also generous stamp duty concessions.

This article looks at the First Home Owners Grants and stamp duty concessions available right now across Australia.

Please note the eligibility requirements change from state to state.

New South Wales First Home Owners Grant

The New South Wales First Home Owners Grant or the First Home Owner Grant (New Homes) scheme was established to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant.

The Scheme only applies to new homes and is scheduled to reduce to $10,000 on the 1 January 2016.

What’s a new home?

According to the NSW Government a new home is:

  • A home that has not been previously occupied, this includes occupation by the builder, a tenant or anyone else.
  • A home that has not been previously sold as a residence.
  • A home that has been substantially renovated.
  • A home that is being built to replace demolished premises.

Am I eligible?

Find out if you are eligible for the $15,000 grant here.

How can I apply?

You can apply for the grant through your bank, financial institution, mortgage broker or directly through the NSW Government.

Applications lodged with financial institutions will have the grant available for settlement or for the first draw down on contracts to build.

If applying directly with the NSW Government, the house must be complete and you must be registered on title.

Applications must be lodged within 12 months of completion or settlement of your new home. An agent (for example, a solicitor or conveyancer) can help you lodge your application and documents.

What is the First Home – New Home scheme?

The First Home – New Home scheme commenced on the 1 January 2012 and provides eligible home buyers with exemptions from the transfer duty (stamp duty) on new homes (valued up to $550,000) and concessions for new homes (valued between $550,000 and $650,000).

The scheme also provides concessions on a vacant block of residential land.

For more information on the The First Home – New Home scheme in New South Wales click here.

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Queensland First Home Owners Grant

The Great Start Grant is a Queensland Government initiative to help first home owners get into their new first home sooner.

As part of the Great Start Grant eligible first home owners will receive $15,000 towards buying or building their new house, unit or townhouse (valued at less than $750,000).

How can the $15,000 Great Start Grant can help you?

  • It can help you get into your first home sooner.
  • It can help take the pressure off saving your first deposit.
  • It might enable you to buy a better quality property sooner.

How can I apply?

Once you’ve submitted your application, the Queensland Government will process your application within 10 working days. If you apply through an approved bank or lending institution, you may get the grant sooner.

For more information on the Great Start Grant in Queensland click here.

Are there any conditions or penalties?

In some cases, the Queensland Government may pay the grant before you move into your new first home. However, as a condition of the grant, you must tell the Queensland Government and repay the grant if you do not:

  • Complete the transaction of buying or building your new home.
  • Move into the new home within 1 year of becoming the registered owner.
  • Live in the new home for a continuous period of 6 months.

Is there a stamp duty concession in Queensland?

Yes there is.

Am I eligible?

You will be eligible to claim a stamp duty concession in Queensland if you:

  • Have never held an interest in residential land (anywhere in the world).
  • Have never claimed the first home vacant land concession.
  • Are buying a home valued under $550,000.
  • Plan to live in the home as your principal place of residence.
  • Are at least 18 years of age.

For more information on the stamp duty concession in Queensland click here.

Victoria First Home Owner Grant

The Victorian Government has a $10,000 First Home Owners Grant for contracts entered into on or after 1 July 2013 to build or purchase a new home.

When does the grant end?

The scheme is on-going, with no end date at this stage.

What types of homes qualify for the grant?

To qualify for the grant, the home must be used as a principle place of residence.

  • Houses
  • Flats
  • Units
  • Townhouses or apartments located anywhere in Victoria, and
  • Movable homes relocated onto land owned by the applicant.

For more information on the First Home Owners Grant in Victoria click here.

Is there a stamp duty concession in Victoria?

The Victorian Government offers eligible first home buyers a duty reduction when they purchase a new or established home. The duty reduction applies where you buy a principal place of residence valued at not more than $600,000 and where the settlement date is on or after 1 July 2011.

For more information on the stamp duty concession in Victoria click here.

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South Australia’s First Home Owners Grant

A $15,000 First Home Owner Grant is available to all eligible first home owners by the South Australian State Government.

The payment is made once an application has been submitted and approved by RevenueSA or a financial institution authorised by RevenueSA.

What’s the catch?

The property needs to be a brand new home that meets local planning standards in South Australia.

Eligible properties include:

  • Houses
  • Flats
  • Units
  • Townhouses
  • Apartments

The residential property must be occupied by the applicant as their principal place of residence for a continuous period of at least six months. This occupation must commencing within 12 months of date of settlement, or the date construction is completed for owner builders or contracts to build.

For more information on the First Home Owners Grant in South Australia click here.

Western Australia’s First Home Owners Grant

If you are buying or building your first home, you may be eligible to apply for the First Home Owner Grant in Western Australia.

From the 25 September 2013, first home owners purchasing or building a new home may be eligible to receive a $10,000 grant.

First home owners purchasing an established home or a home that has undergone substantial renovations may also be eligible for a grant.

For more information on the First Home Owners Grant in Western Australia click here.

Is there a stamp duty concession in Western Australia?

First home buyers who are eligible for the First Home Owner Grant may also be eligible for a concessional rate of transfer duty, if the value of a property is below certain thresholds.

As at 3 July 2014 the First Home Owner Rate of Duty applies to a dutiable transaction with a dutiable value of up to $530,000 for a house and land, or $400,000 for vacant land.

For more information on the stamp duty concession in Western Australia click here.

Tasmania’s First Home Owners Grant

What is the First Home Builder Boost in Tasmania?

The First Home Builder Boost in Tasmania was established to assist eligible first home owners to purchase a new home or build their home by offering a grant.

The amount of the grant varies depending on when you enter into your contract to buy or build a new home or commence building your new home.

Providing all eligibility criteria are satisfied, first home buyers in Tasmania may be eligible for:

  • $30,000 in 2014.
  • $20,000 from the 1 January 2015 and the 30 June 2015.
  • $10,000 from the 1 July 2015 on wards.

For more information on the First Home Owners Grant in Tasmania click here.

Warning: Pumped On Property are not investment advisers. This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. All readers should seek independent and qualified investment advice before purchasing a property.

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.