Sell with Confidence
Read More
News

Grants and incentives for first home buyers

By Mo Zeitouneh

In recent years, governments of all persuasions have introduced grants and funding programs to help Australians buy their first home.

What grants and incentives are available?

All states and territories offer some funding or concessions for most first home buyers. Funding levels and eligibility vary across the country, but in almost all cases, they are only available for homes that will be a ‘principal place of residence’, that is somewhere you’re going to actually live.

First Home Owner Grant

The Victorian state government’s grant is:

  • A $10,000 grant for new homes in city areas and $20,000 in regional areas;
  • Available for new homes up to $750,000;
  • Only applicable to homes that haven’t been previously sold or occupied.

Other exemptions and concessions

The Victorian state government has several other exemptions and concessions too.

  • First home buyer duty exemption or concession (an exemption or concession on transfer duty separate to the First Home Owner Grant) applicable to new properties up to $750,000.
  • Off-the-plan purchase land transfer duty concession.
  • Pensioner land transfer concession for new or established properties up to $750,000.
  • Principal-place-of-residence concession on land transfer duty for properties up to $550,000.
  • First-home-owner-with-family transfer duty concession or exemption for properties up to $200,000.

First Home Loan Deposit Scheme (FHLDS)

This Federal Government scheme guarantees eligible first home buyer loans up to 15% of property value, allowing deposits as low as 5%.

  • Avoids Lender’s Mortgage Insurance.
  • Applies to new and established properties.

Family Home Guarantee

Another Federal Government scheme, this one:

  • Provides guarantee for deposits as low as 2% for eligible single parents with dependants;
  • Offers a guarantee that runs four financial years from 1 July 2021.

First home super saver scheme

This scheme allows first home buyers to save for deposits within their super.

  • Takes advantage of concessional tax treatment of super.
  • Applicants must be 18 or older.
  • Applicants mustn’t have owned property in Australia before

source: rea.com.au

Up to Date

Latest News

  • What you need to know about capital gains tax (CGT)

    Selling shares or your investment property? Don’t forget about capital gains tax, which you may have to pay after the sale. Capital gains tax is a term often thrown around when discussing the sale of assets like shares or property. But if you’re new to the concept, you might be … Read more

    Read Full Post

  • Open House Melbourne: What’s on as event returns for 2022

    Melburnians will be able to set foot in some of the city’s most important cultural and historical spaces for the first time this weekend. The new Melbourne Holocaust Museum building and freshly finished parts of Footscray’s Heavenly Queen Temple will be open to the public for the first time as … Read more

    Read Full Post