In June this year, the Queensland (QLD) government made an announcement that the First Home Owner’s Grant will continue to be $20,000 for another six months until 31 December 2017. It was previously expected to decrease to $15,000.
Why Did Queensland Decide to Keep the Grant at $20,000?
Queensland government understood the fact in this day and age; first time home buyers are finding it hard to get into the real estate market. This is why the grant has been kept at $20,000, to encourage people who are working for their first homes.
Some benefits of the grant mean that first home buyers can:
- Enter the real estate market quickly
- Consider other properties that they previously could not afford to buy
Eligibility for the $20,000
You have to fulfill the following criteria in order to qualify for the grant:
- Be an eligible first home buyer
- Must enter into an agreement to buy or build a new house that is below $750,000 before 31 December 2017
It is important to note that the first home buyers grant is still only relevant to new properties and has not changed.
First Home Owner Grant – Case Study
In order to get a better understanding of the entire process, let’s take a look at an example. Suppose, you and your partner currently live in a rented apartment and planning to buy your first home. You are trying your best to save as much money as you can before 30th June and be eligible for a $20,000 first home owner grant, but haven’t yet reached there. However, you recently heard the news that the government is extending the grant until 31 December 2017. This motivates you and your partner to save enough money so that you can secure a contract for a new house before the end of the year.
Different types of properties, including off-the-plan, under-construction property, and a new house (construction completed) can qualify for first home buyers grant.
Below are the eligibility criteria for these properties:
- Off-the-plan – It includes the projects where no construction has taken place yet but they qualify for construction. So, even if doesn’t start construction until 2018, you will be eligible for the grant, provided you buy the property before 31 December 2017.
- Under Construction – It includes those properties where the construction is still underway and not yet completed. It does not matter if the project will be completed at the end of 2018 as long as you buy the property before 31 December 2017.
- A Newly Constructed Property – You will qualify for a $20,000 grant if the construction of the property has completed and you have signed a contract before 31 December 2017. In addition to that, you also fulfill the criteria of first home buyers grant.
So far, you have saved $20,000 and plan to secure at least a 5 percent deposit. Suppose, you plan to buy the second option (under construction) for $460,000, then you need to save $3,000 more before 31 December 2017. If you manage to save the required deposit and sign the agreement before the year ends, you become eligible for the grant.
Chat to Hunter Galloway today about how we can sort out your financing for the First Home Owners Grant on 1300 088 065 or email Nathan at Nathan.Vecchio@HunterGalloway.com.au