New ‘First Home Owner Grant’

First home owners must buy or build new homes or miss out on the grant. In an attempt to stimulate the sluggish residential building industry, the Qld Government has changed the eligibility rules for receiving the First Home Owner Grant (FHOG).

Previously, first home buyers received $7,000 when they purchased a new or pre-owned property up to the value of $750,000. From 12th September 2012, they receive the new $15,000 First Home Owner Construction Grant (FHOCG), provided they buy or build a new home (includes off-the-plan and substantially renovated properties).

Anyone wishing to buy a pre-owned property only has until 10th October to sign a purchase contract to qualify for the outgoing $7,000 grant… after this date they’ll get absolutely nothing.

In theory, the government’s plan to help the building industry sounds good, but the Real Estate Institute of Queensland says that 76% of first home buyers actually bought pre-owned homes because of their lower prices. The pricing discrepancy between new and second-hand homes is largely due to the fact that local and state governments impose massive taxes & charges on developers which equate to approximately 15% – 20% of a property’s value.

In other words, a new home which sells for $500,000 includes around $75,000 – $100,000 in government costs!! It’s no wonder kids are choosing to rent or stay at home with mum and dad until their thirties!

$15,000 Grant Eligibility Guidelines:

  • to assist with buying or building a new house, unit or townhouse
  • homes must be worth less than $750,000
  • available to Australian citizens and permanent residents
  • must not have previously owned a ‘principal place of residence’ in Australia
  • may rent the property out for up to 12 months before moving in
  • need to move into the home within 12 months of settlement
  • must live in the home for at least 6 months continuously

For more information on the new grant, follow this link to the Office of State Revenue website: http://www.osr.qld.gov.au/first-home-owner-grant/index.shtml

© Brian White – This article courtesy of https://www.brisbaneunitsales.com.au The article may be reproduced provided the above courtesy notice and author name remain intact.