The prices of buying or building a home are skyrocketing in Australia, and the amount is so high that most people are giving up on their dreams of buying a home for their family. Moreover, a large chunk of the population is living on lease or rented apartments. Not only is this bad for the people, but it is also slowing down the construction industry leading to a loss in the overall revenue.
Therefore, to combat these issues, the Australian government has initiated the First Home Owner Grant.
Also Read: First Home Loan Deposit Scheme
What Are The Criteria To Get The First Home Owner Grant?
Before we get started, one important factor to know is that only if you signed your first home contract after 1st July 2013 or not. Moreover, your first home cannot be your real estate investment that you lease out on Airbnb or are already living in it. Your brand new home must cost you less than $750,000 and can be one you’re making out of a demolished building.
Apart from that, you have to take care of the following things before applying for the First Home Owner Grant:
- If you or your partner has received the FHOG in Australia
- If either of you owned a house before independently or jointly
- Owned a house partly or jointly and lived in it for at least six months after 2000
However, if you bought a home after 2000 but, instead of living in it, you rented it out. So, it will not be taken into consideration as your first residence. In this case, you can apply for the First Home Owner Grant.
Also Read: Ready To Buy Your Dream Property? How To Find A Buyer’s Agent
What Must Other Criteria One Fulfil To Apply For This Grant?
In addition to the criteria as mentioned earlier, check for the following:
- An applicant of the First Home Owner Grant should be a minimum of eighteen years of age.
- Either you or your spouse must be a permanent resident or an Australian citizen.
You or your spouse must live in that house for a minimum of a year as your permanent place of residence from the date of the completion of the construction. However, this does not apply to those in the Australian defense force, Army, Navy, etc.
Also Read: How To Invest In The Right Property Within Budget?
Who Should You Include In Your First Home Owner Grant Application?
Those who borrow money from a bank or any other financer need to make sure that the bank or financer is lodging the scheme for you. Moreover, if you need this grant to make a settlement or progress payment, lodging it with an agent will be a good idea.
Besides, a potential first homeowner with a family can get a full exemption if the value of their property is less than $150,000. And if your property’s valuation is above $200,000, then you only get a concession.
If you want the former and want to apply for your family, you must have a child who is completely dependent on you during the sale. Moreover, if you don’t have a child under eighteen years of age, both your spouse and you must be eligible under the criteria we discussed above.
Read: Top 5 Reasons To Hire A Buyers Agent When Buying A House
Conclusion
In addition, if you are a pensioner, you too can apply for this scheme under the section of duty exemption, concession, or a one-off concession while buying. To be a perfect candidate for this scheme, you should have a newly built home or an established property. Moreover, another criterion is that you built your house within three years of buying the plot of land.
