Many people believe that buying your first property is increasingly difficult. With the cost of living and property prices rising it seems near impossible to save the funds you need to put down a deposit, but before you get scared off it’s important to know that there are many government initiatives out there like the First Home Owners Grant (FHOG) to help you reach your goal!
The First Home Owners Grant is only one of many government initiatives out there for first home buyers. Some of the others include First Home Buyer Duty Concession, First Home Buyer Duty Reduction and Principal Place of Residence (PPR) Concession. Each of these have their own eligibility criteria and price or value threshold. They also give you the ability to reduce some of the expenses that come with buying a property. In this article we will look at the various government initiatives in a broad sense to help you get an idea of what is available and how they may apply to you.
First Home Owners Grant
The First Home Owner Grant (FHOG) is available when you buy or build your first new home. If you’re looking to buy your first home you may be eligible for $10,000 under the First Home Owner Grant.
Your first home can be a house, townhouse, apartment, or unit. Currently, it needs to be valued at $750,000 or less and it must be less than five years old. You WILL NOT be eligible for the First Home Owner Grant you or your spouse/partner:
– Have received the First Home Owner Grant in Australia previously
– Owned a home or other residential property in Australia either jointly or separately before 1 July 2000
– Occupied for a continuous period of at least six months a home which either of you owned or part-owned on or after 1 July 2000 in Australia
In addition to this, to be eligible for the First Home Owner Grant you must live in the property as your principal place of residence (PPR) for at least 12 months, commencing within 12 months of settlement or if you are building – the completion of construction. You must also be 18+ and be an Australian citizen or permanent resident.
First Home Owner Duty Concession
The First Home Owner Duty concession, exemption or reduction is available for first home owners in addition to the First Home Owner Grant. You may know this concession as the Stamp Duty concession. There are a couple of different variations of this. There is the concession and exemption. To receive the first home buyer duty exemption, the current rules say your property price must be $600,000 or less. To receive the concession the price must be between $600,001 to $750,000.
Much like the First Home Owner Grant the exemption or concession is only available to you once. You also must live in the property for at least 12 months – the same as the First Home Owner Grant. However, unlike the First Home Owner Grant, you can buy either a new or established home.
Principal Place of Residence Concession
At the moment, as a first home owner you may also be entitled to a concession from duty when you buy a property that you intend to live in for a continuous period of 12 months – within 12 months of settlement. The Principal Place of Residence Concession is not only available to first home owners though. It is also available for anyone who is purchasing a home and planning to live in it for at least 12 months.
To be eligible:
– The property must be valued up to $550,000
– Start using the property as your primary place of residence within 12 months of becoming entitled to possession of the property
– Live in the property for a continuous period of at least 12 months
So, if you were looking to purchase your first home you may be eligible for the First Home Owner Grant, The First Home Owner Duty Concession and the Principal Place of Residence Concession. These government initiatives may help you reach your goal of purchasing your first home sooner rather than later and it is definitely worth looking into these and applying for them as a first home owner.