First Home Owner grants - are you eligible?
With the federal election over and the start of a new financial year this is the perfect opportunity to review your finances and start planning for your first home. So, where to from here?
According to the experts at Loan Studio, now is a great time for first home buyers (FHBs). By taking advantage of government grants and other assistance available, buying your first home may be within reach.
As a first home buyer you may be eligible for stamp duty savings of up to $31,070, this is in addition to grants of $10,000 or $20,000 depending on the location. These incentives can make all the difference as you save to buy your dream home.
First Home Owner Grant
If you are buying or building a new home in Victoria valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). A $10,000 FHOG is available when you buy or build your first new home in metropolitan Melbourne. The FHOG increases to $20,000 for new homes built in regional Victoria, which includes areas such as Geelong. There’s no time like the present to find out more as these grants currently apply to contracts signed up to 30 June 2020.
Click here to find out if you’re eligible for the First Home Owners Grant (FHOG)
First Home Buyer duty exemption or concession
In addition to the FHOG you may also be eligible for savings on stamp duty, such as a duty exemption or concession.
The duty exemption is available to first home buyers when they purchase a new or established property in Victoria with a dutiable value up to $600,000. The dutiable value is the contract price you pay for the property but note that if the contract price of the property is less than the market value, the dutiable value will be equal to the market value. So, if you purchase your new home for less than $600,000 (dutiable value) then you won’t pay stamp duty for your property. If you purchase a new or established home where the dutiable value is between $600,001 and $750,000, then you may be eligible for the duty concession, and will receive a discount on your stamp duty.
Click here to find out more about the First Home Buyer Duty Reduction.
First Home Super Saver Scheme (FHSS)
If you’re saving for your first home make sure you’re across the FHSS scheme. This scheme, which was released by the Australian government in 2017/18, aims to reduce the pressure on housing affordability by allowing you to save money for your first home within your superannuation fund. By doing this you can save faster for a deposit and get into your dream home sooner.
Since 1 July 2017 eligible first home buyers can make voluntary before-tax and voluntary after-tax contributions into their super fund to save for their first home. Since 1 July 2018, first home buyers using this scheme can apply to release the voluntary contributions, along with associated earnings, to help purchase their first home.
Please note you must meet the eligibility requirements to apply for the release of these amounts.
Click here to find out if you meet the FHSS eligibility requirements.
The Australian government strongly voiced their support for first home buyers in the recent election campaign. Continue to watch this space for new initiatives that we can expect the government to legislate in the coming year.
In addition to the assistance from government, banks have products and incentives tailored to first home buyers. These incentives vary but may include a refund on conveyancing costs or specially discounted rates offered only to first home buyers.
A final tip from the experts at Loan Studio: If you’re in the market for a first home it pays to do your homework. Speak to one of our partners at Loan studio for non-obligatory financial advice. Finding out if you’re eligible for the various grants and assistance available might put you one step closer towards your dream of owning a home.
Visit our First Home Buyers Guide here for answers to all your questions and find out which are the most popular home designs for first home buyers.