Are you ready for the property market? (First Home Owner Grant)
Author: Diana Antonious
Are you ready to take that next step in your life and purchase your first home?
Are you looking to begin investing in the property market?
Purchasing your first home can be one of the most important and exciting financial decisions you make in your lifetime.
Where to begin…
Whether the home is to live and raise a family in, or to purchase as an investment, buying a house requires research and careful consideration of all your options.
Things to consider when buying a property include:
What is the First Home Owner Grant (FHOG)?
- Price, potential growth, location, size, and expected rental return
- You should also research current and proposed infrastructure in the area and surrounding suburbs – such as schools, transportation, convenience stores and malls – that impact lifestyle and investment preferences.
Making sure you understand the current FHOG payment criteria and confirming your eligibility for government schemes before purchasing a property may have a significant impact on your decision.
Ensuring you meet eligibility criteria is the first step in the process. Think about your age, previous home ownership, and Australian citizenship status. There are residency requirements and you may need to check that you hold the right visa. You also need to intend to live in the home as a principal place of residence (PPR) for at least 12 continuous months, starting within 12 months of settlement or completion of construction.
- First Home Owner Grant (FHOG)
The FHOG is subject to government and legislative changes that occur from time to time. It is important to research the current legislation in your state, the available grants and effective dates.
Currently, a $10,000 FHOG
is available when you buy or build your first new home. Your home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less
, and be the first sale of the property as residential premises. It cannot be an investment property or a holiday house.
- Stamp duty reduction
On top of the FHOG, you may also be entitled to receive a stamp duty reduction
. This currently entitles eligible first home buyers a 50 per cent reduction of duty when they purchase a new or established property in Victoria valued from $130,000 up to $600,000.
For more information about these grants and eligibility, visit the State Revenue Office
Stamp duty and the associated costs of property (refer to my article The real cost of owning a home)
can make purchasing a home a costly exercise to undertake. Understanding what your options are and taking advantage of what is available to you can help reduce these costs – the savings can be enormous!
Get the right advice as early as possible to put you and your family in the best position. For more information, speak with one of our financial planners and mortgage brokers about your debt advice and this important purchase.
General Advice Disclosure:
This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person.
You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.