Home builders and land developers are desperate for your home business, as shown by the recent boost to FHOG so you can count on discounts from both of these players to make buying and building a new home more attractive.
Home sales throughout Australia are down and home builders, real estate agents and land developers are all feeling the pinch.
Concerned State Governments are adding to the Federal Government's $7,000 first home owners grant, [FHOG] in an attempt to get first time home buyers back to looking to buy a home.
What the State Governments are offering right now, State by State :
Australian Capital TerritoryThe Home Buyer Concession Scheme is an ACT Government initiative that charges stamp duty at a concessional rate. The rate depends on the date of purchase. The Federal Government is still offering the its $7,000 First home Owners Grant, which after 11 years looks a bit tight, compared to the cost of building a new home home these days. This grant only applies to homes under $750,000 in the ACT as they figure if you are spending more you don't need assistance.
Conditions to note.
The first home buyer must lodge their HBCS within 90 days of the grant, transfer or agreement, and applicants must satisfy previous property ownership criteria, as well as an income test. For the actual details of this scheme visit www.revenue.act.gov.au/home_buyer_assistance/first_home_owner_grant
New South Wales
Eligible first home buyers in NSW can receive the First Home Owner Grant (FHOG) of $7000 to assist them in the buying or building of their first home, regardless of income or the area in which they plan to buy or build. A cap of $835,000 on the value of the home has been in place since 1 January 2011. Only one grant is payable per purchase, regardless of the number of eligible applicants involved in the transaction.
The First Home Plus Scheme, is a NSW Government initiative providing exemptions or concessions on transfer duty for eligible first home buyers. Homes up to the value of $500,000 are exempt from the tax, while homes valued between $500,000 and $600,000 receive a concession. In total, First Home benefits of up to $24,990 ($7000, plus a duty exemption of up to $17,990) are available.
Changes to note in NSW.
From 1 January 2012, the First Home Plus Scheme will be replaced by the First Home - New Home Scheme. Under this, stamp duty concessions will only be available to first home buyers purchasing a brand new home or vacant land intended to be used as the site for a first home. Buyers of established properties will no longer receive the transfer duty exemption or concession as of 1 January 2012. For more information, visit www.osr.nsw.gov.http://www.osr.nsw.gov.au
Northern Territory
The Federal Government's FHOG scheme provides a $7000 grant to first home buyers. A cap of $750,000 applies. The Northern Territory Government provides a stamp duty First Home Owner Concession (FHOC) for first home or first land buyers.
From May 2010, FHOC is an amount up to $26,730 off the stamp duty payable on the first $540,000 of the dutiable value of the property. The FHOC is not means tested, but the purchase price of the home or land must not exceed $750,000 for a home or $385,000 for a block of land.
Where these thresholds are exceeded, the FHOC does not apply, but you may be eligible for the Principal Place of Residence Rebate of up to $3500 off the duty payable
Queensland
The FHOG scheme provides a $7000 grant to first home buyers. A cap of $750,000 applies. Until the 31 January 2012, the $10,000 Queensland Government Building Boost Grant is also available to buy or build a new home. The First Home Concession are available to help reduce transfer stamp duty costs,and eligibility requirements can be viewed at visit www.osr.qld.gov.http://www.osr.qld.gov.au
South Australia
The FHOG scheme provides a $7000 grant to first home buyers. A cap of $575,000 applies. SA also offers a First Home Bonus Grant that provides an additional payment of up to $8000 for eligible first home buyers who enter into a contract to purchase or build a new home before 1 July 2012, or an owner builder who commences construction before this date. For details on this and any sunset conditions go to visit http://www.revenuesa.sa.gov.http://www.revenuesa.sa.gov.au
Tasmania
The FHOG scheme provides a $7000 grant to first home buyers. A duty concession may be available to eligible first home buyers. A concession up to $4000 is available for the purchase of established dwellings up to the dutiable value of $350,000. Or $2400 for the purchase of vacant land, up to the dutiable value of $175,000. For more information, visit http://www.sro.tas.gov.http://www.sro.tas.gov.au
Victoria
Victoria seems to be the best State to buy a home in and this is reflected in the number of homes that are being built there. The FHOG scheme provides a $7000 grant to first home buyers. A cap of $750,000 applies.
Until 30 June 2012 (contract date), you may also be eligible to receive the First Home Bonus, an additional payment of $13,000 for new homes only – a cap of $600,000 applies for these added incentives.
www.sro.vic.gov.http://www.sro.vic.gov.au
Western Australia
The FHOG scheme provides a $7000 grant to first home buyers. A cap of $750,000 applies. The Home Buyers Assistance Account provides first home buyers with a grant of up to $2000 to assist with the incidental expenses purchasing an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
This is a divergence from other states in that its promotes first home buyers buying an established home, not building a new home. To get more information, visit www.commerce.wa.gov.au and download the special PDF, http://www.commerce.wa.gov.auwww.osr.qld.gov.http://www.commerce.wa.gov.au
