This is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
Most Australian states have their own First Home Buyers incentive programs.
Victorian eligible first home buyers are entitled to a $10,000 grant on a newly constructed home, e.g. House & Land packages or a newly built home being sold for the first time. This only applies if the price of the property doesn’t exceed $750 000. If your property is classified as a regional area you are entitled to $20,000, to find out more about regional location click here.
And regardless whether the property is new or established, Victorians buying their first home are exempt from paying stamp duties when the purchase price is not more than $600,000. This duty exemption will be available to property purchases where the contract to buy is completed from 1 July 2017.
Contact us if you would like to discuss your eligibility for First Home Buyer benefits and other home owner incentives.
To take the paperwork and administrative burden from you, I will take First Home Owners applications on behalf your new lender, and will do so at the same time as the loan application.
Do I get the grant in cash?
As a first home buyer, you generally do not receive the grant funds. It goes into the melting pot of money on settlement day, and effectively reduces the amount of cash that you need to contribute to the purchase price.
If you want to pay the full amount at settlement, then you can opt to receive the grant as a deposit into your bank account after the settlement has been finalised.
When must I move into the home?
At least one benefit applicant must occupy the home as your principal place of residence within 12 months from either the date of settlement or completion of construction.
Is there a minimum time limit I have to reside in the property?
At least one applicant must occupy the home as your principal place of residence for a continuous period of at least 6 months, commencing within 12 months of either the date of settlement or completion of construction.
If I buy a property with a friend, and both of us are eligible for the FHOG, do we both receive the benefits?
There is only set of benefits payable per transaction, regardless of how many purchasers there are. Where there is more than one purchaser the grant is paid jointly.
Am I eligible if I have owned residential property after 1 July 2000 but have rented it out and not occupied it myself?
The ownership of an investment property purchased after 1 July 2000, provided you have not occupied the property, will not affect your eligibility for benefits. You would still be eligible to apply on the purchase of a property you intend to live in.
The website www.firsthome.gov.au has some basic information regarding eligibility for the FHOG, and links to each State’s own FHOG information.
You can download the free ‘SRO Mobile’ application from the Apple App Store, and can quickly see if you are eligible to receive the First Home Owner Grant (FHOG), the Victorian Government’s First Home Bonus and the Regional Bonus. The application will also automatically calculate how much you may be eligible to receive from the government.