Thinking about buying your first home? Taking advantage of Perth’s current property market and the Federal Government’s First Home Owner’s Grant (FHOG) is a great place to start. But do you understand all there is to know about it?
Following the state government’s announcement of a boost to the first home owner’s grant, we thought we’d break it down for you.
What is the FHOG and what is the increase?
As of 1 January 2017, the government’s FHOG was increased by $5000 to $15,000 for eligible buyers. Its website states: “First-time home owners buying or building a new home may apply for a grant of up to $10,000. Contracts signed between 1 January 2017 and 31 December 2017 may be eligible for an additional boost payment of $5,000.”
This means you can receive up to $15,000 towards your first home, without having to pay stamp duty.
Are you eligible?
The FHOG only applies to new residential dwellings – not established homes, vacant land, business premises, holiday houses or minor renovations to an existing home. However, if you buy a first home that has undergone substantial renovations, you may be eligible to apply. For more information about the FHOG and your eligibility, download the FHOG fact sheet.
For a contract to build a home, construction must commence within 26 weeks of entering the building contract and be completed within 18 months after construction commences. For owner-builders, construction must be completed by 30 June 2019.
The purchase of a new home ‘off-the-plan’ will be eligible if construction is completed by 30 June 2019.
As with the old grant, the boost will be paid for homes up to the value of $750,000 (or up to $1 million if the home is located north of the 26th parallel).
You may also be eligible for Keystart – a WA government initiative to help first-time Western Australian investors begin their property investment journey through affordable housing.
Impact of the increase
This boost to the FHOG has seen an increase in enquiries from potential home buyers, and more awareness of where they can buy.
So, if you’re starting to think about how to capitalise on Perth’s property market, and would like to learn more about the First Home Owner’s Grant, why not complete our Getting Started form to get the ball rolling.
Or, if you’d like to learn more about property investment in general, why not read our free Get Ready to Invest in Property eBook.
It takes you through five simple steps to help you understand strategic property investment and how to make it work for you.
So if you’re ready to learn some great insights into getting started in property investment, download Get Ready to Invest in Property eBook here.