With much made of the ever inflating Australian housing market and the challenges young Australians face entering it, the federal government has reacted and effective 1 July 2016 has increased the First Home Owners Grant to $20,000.00.
The Queensland First Home Owners’ Grant is a state government initiative to help first home owners to get their new first home sooner. The First Home Owner Grant has been amended to apply to new and substantially renovated properties only and is no longer available for the purchase of established properties. Depending on the date of your contract, you may be eligible for $15,000.00 or $20,000.00 towards buying or building your new house, unit or townhouse (valued at less than $750,000.00). New homebuyers are able to claim the grant on off the plan purchases or properties they build.
To be eligible for the grant:
- You must be an Australian citizen or permanent resident (or applying with someone who is).
- You or your spouse must not have previously owned property in Australia.
- You must be at least 18 years of age.
- You must be buying or building a brand new home, valued under $750,000.
- Test your eligibility.
A new or substantially renovated property is:
- a home that has not been previously occupied or sold as a place of residence; or
- a substantially renovated home that, as renovated, has not been previously occupied or sold as a place of residence; or
- a property which is subject to an “off the plan” purchase agreement.
For an applicant to be eligible for the FHOG on the purchase of a new home, the home must not have previously been occupied, and the home must not have previously been sold as a place of residence.
This is of course in addition to the first homebuyer’s concession on transfer duty, for which young Australians entering the housing market home buyers are also eligible. The combination of these savings could in circumstances save a first time homebuyer near the sum of $30,000.00.
If you are looking to capitalise on the above incentives and wish to enter the property market as a first time home buyer, contact one of our conveyancers Zion Saint or Shelley Shannon to discuss your options with McLaughlins Lawyers.
Author: Zion Saint
Partner: Ian Kennedy