What is the first home owners grant?
The Great Start Grant is an initiative started by the state government to help first home owners get into the property market. At the moment, the government will provide you with $20,000 to get into your first home, which is a great incentive to buy.
With Australian housing becoming more and more unaffordable for Gen Y’s and Millennials, the grant has never been more valuable to first home buyers than it is now.
Who is eligible?
To be eligible for the grant, you must fulfil the following criteria:
- You must be at least 18 years of age
- You must be an Australian citizen or permanent resident
- You or your spouse cannot have owned property in Australia previously
- You must move into the home within 12 months of the transaction being completed
- You must reside in the home for 6 months
Are there any other requirements?
- You must be building a property or buying a brand new property
- The home must be worth less than $750,000
For more information on terms and conditions, chat to a Red & Co Advisor or go to the government website.
When do I get paid the grant money?
When you get paid depends on the type of property you are buying. You may be paid at registration confirmation, at settlement, at final inspection or on the first draw of funds.
For more information on this, please visit the First Home Owners Website.
What other concessions are available?
As a first home buyer, you are also eligible for a stamp duty concession. The way the government officially explains the concession can be a bit confusing. They deduct an amount from the stamp duty payable based on the property’s value and where that value lies within the value brackets they use.
Up to an amount of $504,999.99, the deductible amount will be more than the actual stamp duty. In simple terms, if you are buying a property under this value, you don’t need to pay any stamp duty at all! Above $505,000, the deductible concession starts to decrease so you can deduct some of the duty but not all of it.
If you’re purchasing a property above $550,000, unfortunately, you can’t claim the stamp duty concession.
For more information on this, please visit the Fair Work Australia website here.
An example of buying with and without the grant
|Property Value (QLD)||$350,000||$350,000|
|Stamp Duty (Govt Fee) *||$3,500||$0|
|Title Transfer (Govt Fee)||$925||$925|
|Lenders Application Fee||$600||$600|
|Less Great Start Grant||$0||($20,000)|
|Loan Available**(LVR 95%)||$339,500||$339,500|
|Non FHB Contribution||$28,122|
|Contribution as First Home Owner||$4,622|
*Estimate of Fees only.
**Assumption this fee is financed to 97% LVR
First home buyers, you need to pay attention here. After 30 June 2017, the grant amount will decrease to $15,000. The date they use to determine your eligibility will be the date of the contract, not the date of settlement. This means that if your contract is signed before 1 July 2017, the grant amount will still be $20,000, even if settlement is after 1 July 2017.
In other words, now is a great time to buy your first home if you’ve been thinking about entering the property market!
Ready to buy your first home?
If you have been thinking about buying your first home then now is a great time to get that contract signed, or you could lose $5000 of free money. Let’s be honest here… who doesn’t want free money?!
Get your finance approved in as little as just 5 days by chatting to one of our finance experts today.
Don’t know where to start looking for new stock? You can start here with Red & Co’s upcoming apartments or visit the ‘New Homes’ section of realestate.com.au. You can also get in touch with one of Red & Co’s experienced agents if you need help choosing a property or a site to build on.
*The information in this post is relevant to Queensland only.