18 Aug Explainer: the first homer buyers grant
If you’re looking to buy your first home, odds are you’re keen to get as much help as possible. Any little bit of extra help can be a game changer. One of the most frequent questions I get asked is “what is the First Home Owner Grant, and how can it help me get on the property ladder?”
Basically, the First Home Owner Grant is a one-off payment available to first home buyers when buying or building a residential property.
Sounds great, right? Well, yes! But like most Government things, there’re a few complicated things about it, and not just anyone can get the grant. There are rules and eligibility requirements, and its best to be across as much as possible before you start.
How much is the grant?
It depends! If you’re building a new home in Perth, the grant is $10,000 for properties valued up to $750,000. If you’re north of the “26th parallel” (which is to say, north of the small WA town of Denham), then the grant cap is raised to $1,000,000.
Unfortunately, the Government isn’t currently offering grants for the purchase of established homes, but first home buyers may qualify for the first home owner rate of duty, if the home is valued at less than $530,000.
Can I get it?
In order to be eligible for the grant and/or first home owner rate of duty, there are some criteria you need to satisfy. You need to be:
- 18 years or older,
- An Australian citizen or permanent resident,
- Intending to live in the home for a continuous period of at least six months within 12 months of settlement.
You also need to have never owned residential property anywhere in Australia, and have never received the grant before from any other State or Territory in Australia.
Okay, great. What else do I need to know?
As with any financial matters, the devil is in the detail. There are numerous other conditions to satisfy, such as the window of time for the house to be built, time frames in which contracts are signed, and other things.
If you’d like to have a further chat about the grant, just get in touch. I’m always happy for a coffee 😊