What You Need To Know About The First Home Owner’s Grant
The First Home Owners Grant (FHOG) is a state government incentive that makes it easier for Australian’s looking to enter the property market and realise their dream of owning a home – a helping hand.
It is important to note that the grant differs in each state and in most instances applies to new homes only.
How does it work?
If you are a first time home buyer purchasing a new build property, or building your own property (or contracting with a builder to do so on your behalf) – you may be eligible to receive a one-off grant from the government. Each state sets a property value limit for FHOG eligibility. To find out more about the FHOG in each state, visit http://www.firsthome.gov.au/
How much is the grant?
The amount that first home buyers can benefit from varies significantly depending on which state you live in.
As of 2019, the current value of the FHOG in Queensland properties is $15,000 if you are buying or building a new home up to the value of $750,000. This grant is only available to first time home buyers purchasing a new property or for people who are building their own property (or contracting with a builder to do it on their behalf).
For details on the First Home Owner’s Grant across all states click HERE
Am I eligible for the grant?
To be awarded the First Home Owner’s Grant, you will need to meet certain eligibility criteria which can vary depending on your circumstances. You can find out more on the FHOG eligibility HERE
General eligibility criteria include;
- The home you are buying or building must be new and valued less than $750,000 (including land).
A new home is a brand new dwelling that has not been previously occupied as a place of residence or sold as a place of residence. In some cases, existing properties may be eligible, provided they have been extensively renovated, refurbished or altered to provide suitable living space.
- You must be over 18 years old.
- You must be an Australian citizen, have a permanent visa or be part of a joint first home owners grant application, along with an Australian citizen. In some circumstances, New Zealand nationals with a special category visa may also be eligible.
- You must not have owned a home previously.
- You have not received a first home owner grant previously.
Can I get the grant on an existing property?
Existing properties are not eligible for the FHOG. Generally, the First Home Owner’s Grant is offered to first home buyers who are buying a new-build property for the first time or who are building a new home for the first time. In a select few instances, the First Home Owner’s Grant may be awarded on an existing property where extensive remodelling has taken place before you bought the property– this is however judged on a case by case basis.
You can find out more about First Home Owner’s Grant and the renovation eligibility HERE
To remain eligible for the grant
In order to keep the grant, applicants are required to meet certain requirements;
- You must move into the home within one year of the completed eligible transaction
- Live in the home continuously for 6 months
- Notify the appropriate department if for any reason you cannot fulfill the above requirements
It is important to note that grants and government incentives tend to change, sometimes without much notice. Be sure to keep up to date with what’s available in your state and make a point to double-check eligibility requirements before you buy or commence a build.
Speak to the team at Valcon Homes to discuss your home building options