Looking to buy your first home? It’s an exciting step!
Buying a house is cheaper in some states than others for reasons beyond the cost of the home itself. This is because of tax exemptions and grants for people who have not owned a home before.
Where a few years ago the First Home Owners Grant (FHOG) applied to all homes, it now only applies to brand new homes.
Here is a quick breakdown of what you get based on where you live:
Australian Capital Territory
As an eligible buyer in the ACT, you can claim up to $10,000 to put towards the cost of your home.
You do have to purchase a new home to live in and be an Australian resident who has never purchased a home before. The ACT government requires that you live in the home for a period of one year.
New South Wales
New home buyers in NSW also qualify for a $10,000 grant from the government on a home valued up to $500,000. There are concessions for homes to the value of $600,000.
A new home grant may apply, even if you are not a first home buyer, of up to $5000.
The Northern Territory Government gives first home buyers a generous $26,000 to put towards the cost of a newly built home. There is also a grant of up to $2000 for the purchase of household goods for eligible recipients of the First Home Owners Grant. Buyers must be permanent residents who have never purchased a home before and they must agree to live in the home for one year.
From July 2016, the state of Queensland gives people who are buying or building their first townhouse, unit or freestanding house $20,000 to put towards the cost. Buyers can purchase off the plan or build their own designs. The home must be brand new and it must be worth less than $750,000, plus you must be an Australian citizen who has not owned property before.
The amount a new home buyer can claim in South Australia is $15,000. The same caveats apply – you must be an Australian citizen who has not purchased a home before. The value of the property must not exceed $575,000.
In Tasmania, the government recently doubled the FHOG to $20,000 as part of the 2016 – 2017 state budget. This will revert to $10,000 in July, 2017.
Homes must be new or bought off the plan and building must be complete within 24 months of the commencement date.
Victoria’s First Home Owners Grant extends to $10,000 and is for new builds only, to the value of $750,000.
Generally payment comes through on settlement if you are purchasing off the plan or buying a new home.
In WA, as a first home buyer you will receive $10,000 to put towards the cost of a new home that will be your primary residence. The cost is capped at between $750,000 and $1 Million depending on where in WA you purchase the property.
Please note, these details were correct at time of writing. Please check the link for your state for the latest information.