Let's face it, first home buyers are doing it tough these days. Particularly in the hot property markets of Sydney and Melbourne it may seem that, by the time you have saved for a deposit, prices will have risen so much that it simply won't be adequate. One way you might just squeeze your way into the property market, however, is to look into purchasing a home that fits the eligibility criteria for you to receive a First Home Owner Grant (FHOG).
The First Home Owner Grant scheme was introduced in 2000 and is a national scheme funded by the states and territories, and administered under their own legislation. Under the scheme, a one-off grant is payable to first home owners who satisfy all the eligibility criteria, which varies from state to state and is subject to change. In some states, first home buyers may also be eligible for stamp duty concessions to further help them along the way to home ownership.
In general, to be eligible under the scheme you must:
Be a first home buyer as an individual, not a company or trust
Be a permanent resident or Australian citizen
Be over 18 years old
Must occupy your first home as your principal place of residence within 12 months of the purchase or construction of the dwelling and must occupy it continuously for a period of at least six months.
Here's what you could be eligible for on a state by state basis.
New South Wales
First home buyers in New South Wales can receive $10,000 for new builds only, up to a value of $750,000.
On new homes, there are also stamp duty concessions for first home buyers, with full exemption on homes up to $550,000 and concessional rates for new homes valued at from $550,000 to $650,000.
Victoria
The FHOG is currently $10,000 to $20,000 for new builds only, up to a value of $750,000. From July 1, 2017, this will double for new homes in regional Victoria.
Also from July 1, stamp duty will not apply to first home buyers for any new or established property with a value of up to $600,000.
Stamp duty concessions will also be available for homes priced from $600,000 to $750,000.
Queensland
Up until June 30, 2017, the FHOG is $20,000 for new builds only, with a value up to $750,000. Full exemption on stamp duty applies for homes valued up to $500,000, with concessions on a sliding scale for new homes valued from $500,000 to $549,000.
Western Australia
In Western Australia, the FHOG is $10,000 for new builds or 'substantially renovated' homes priced from $750,000 to $1 million and is dependent on location.
Stamp duty concessions apply on all properties bought by first home buyers, with full exemption up to $430,000 and concessions on a sliding scale for houses valued at $431,000 to $530,000.
South Australia
A one-off payment of $15,000 is available for new builds only, with a value up to $575,000. In South Australia, stamp duty concessions are available for first home buyers only for the purchase of off-the-plan apartments in designated areas.
Tasmania
The one-off payment in Tasmania is $20,000 until June 30, 2017, when it will drop to $10,000. The FHOG only applies to new builds, however there is no threshold.
Northern Territory
The Northern Territory currently offers a one-off payment of $26,000 for new builds only, with no threshold on value. Here you could also receive up to $2000 to purchase household goods and up to $23,000 off stamp duty if you are a first home buyer purchasing an established home with a value up to $650,000.
ACT
A one-off payment of $10,000 applies in the ACT for new builds and 'substantially renovated' homes up to $750,000 in value. First home buyers purchasing a new home are also eligible for a full stamp duty concession on homes up to $455,000, then concessions on a sliding scale on homes valued at up to $585,000. In the ACT, gross income thresholds also apply.
For full information on eligibility for the First Home Owners Grant in each state and territory visit First Home, and click on the appropriate link.
Once you know the type of property and value you need to be looking for in order to be eligible for the First Home Owners Grant and stamp duty concessions, speak with the helpful team at your local Century 21 office so they can guide you to the most suitable properties that fit the criteria in your area. You could well be on the way to owning your first home after all!