First home buyer? You need to know about this…
At E-Fishient we work with a lot of First Home Buyers who are taking their first steps in the property market. Something that we have realised over time is that despite most First Home Buyers being eligible for the First Home Owners Grant, very few actually know about it, understand it or realise how close it brings them to buying their first property.
Because this has become a reoccurring finding, we thought we’d detail everything those thinking of getting into property need to know about the First Home Owners Grant. As we work in South-East Queensland, we will be focusing on the Queensland First Home Owners Grant.
What is it?
The First Home Owner Grant (FHOG) was introduced on 1 July 2000 to improve housing affordability by offsetting the effect of GST on home ownership. This is a national scheme that is funded by the individual states and territories and administered under their own legislation. This means that each state has a different grant value and some minor eligibility differences. Under the scheme, a one-off grant is payable to First Home Owners that satisfy the criteria.
Currently the value of the FHOG in Queensland is $20,000. This is available for contracts to purchase or build signed between 1 July 2016 and 31 December 2017. After 31 December 2017, the FHOG may be reduced at the State Governments discrepancy.
To be eligible to apply in Queensland there are five key criteria you must meet:
- You are at least 18 years of age
- You are an Australian Citizen or Permanent Resident
- You or your spouse have not previously owned property in Australia
- You are building or buying a new home
- The value of the home is under $750,000
There are a number of other terms and conditions surrounding the grant that can actually mean repaying the grant if you do not meet them. These terms and conditions include:
- You must occupy the property as your principal place of residence for one year after the title registration date (purchased homes) or for one year after the final inspection date (for contracts to build)
- You must live in the property for a continuous period of six months
- You have one year from the completion of transaction to apply
If you have any questions about the FHOG or would like to learn more about your own eligibility or property selection options, please contact us.