Are you looking to buy your first property in Australia? Are you up to date with Government grants and bonuses? Well, let Property Simplicity refresh your knowledge on first home purchases.
Let’s take the Queensland Legislation for First Home Owners as an example; A first home owner that signs the contract of a property between 1 July 2016 and the 31 of December 2017, is eligible for a $20,000 grant.
What you need to know, is that to be eligible of a FHOG (First Home Owner Grant) you must follow some rules.
- You are at least 18 years of age;
- You are an Australian citizen or permanent resident (or you are applying with someone who is an Australian citizen or permanent resident);
- You are building or buying a ‘new‘ home;
- The value of the home is under $750,000;
- You or your other joint applicant(s) have not previously owned property in Australia, and the home will be your principal place of residence within 1 year of completing the transaction and remain in the home for a continuous period of 6 months
Pretty basic rules for now, but what is considered as a New Home?
A ‘new’ home is a house, apartment, unit or townhouse that:
- Has not been previously occupied as a place of residence
- Has not been previously sold as a place of residence; or,
- Is a ‘substantially renovated’ home
In Queensland, another important saving you could be eligible for is free stamp duty. The usual price of stamp duty in QLD is about $12,000. Keep in mind that If the value of the property is less $505,000 you will not have to pay for it.
You will likely be able to claim a first home transfer duty concession if you:
- Have never held an interest in residential land anywhere in the world;
- Have never claimed the first home vacant land concession before;
- Are buying a home (new or established) valued less than $550,000
- Will live in the home as your principal place of residence
- Are at least 18 years of age
There are significant differences between the states of Australia, so depending on where you live, these entitlements could be different. It is always a good idea to find a Consultant that can help you with your needs.