First Home Buyers Grant
The state government of Queensland (QLD) has made an announcement that the first home buyers grant will be extended. Through this, if you are a first home buyer, you can get up to $23,750 of benefits when you purchase or build a new house in Queensland. The following is a break down of the total amount:
- $15,000 of the total amount represents building grant
- $8,750 is the stamp duty rebate if you purchase a property with a price of $500,000 or less than $550,000
You can be either be eligible for one of these incentives or both.
Queensland’s First Home Owners Grant
As discussed, it is a one-off payment by the government to facilitate the first time home buyer. The value of the grant was worth $20,000 until 30th June 2017. From then, it will revert back to its original value, i.e., $15,000 after that date. The purpose of this short-term increase in the value of the grant was to encourage new buyers into buying a new home quickly.
You may not be able to avail the grant if you are purchasing an already built house, but you can be eligible for a stamp duty rebate. You can get a rebate if you fulfil the following:
- You have not previously owned a residential property
- You plan to live in a house for a period of at least 12 months
- Your minimum age should be 18 years and you must be a permanent resident of Australia
Qualification Criteria for QLD First Home Buyer Grant
In order to qualify for the grant, you need to do the following:
- Buy Land – In case you plan to build a home, you should buy land before you sign a contract for building your house. Although it is not a mandatory requirement for winning a grant, it will allow you to build a house in accordance with the piece of land.
- Property Type
- You are building your own house
- Purchasing a brand new home
- Buying off a plan
- Buying a property that will undergo heavy renovation
- Maximum Purchase Price – The overall property price should be below $750,000. For example, you buy a piece of land for $350,000 and spend another $350,000 on the construction of a house, with $45,000 on solar panels, fencing, or landscaping. Therefore, the total value of a property will be $745,000.
- No Previous Grant Received – Lastly, you have not received a grant in any territory or state of Australia before.
It is important to note that you will only be eligible for $20,000 grant only if you have signed a contract by 30th June 2017. For any contract after that date, you are eligible to receive a grant worth $15,000.
Can a First Home Buyer Grant be Used as Deposit?
The answer is yes! You can use the grant as a deposit. This facility allows you to purchase or construct your house sooner. There are a number of people who borrow construction loans for this purpose because they do not have enough savings to purchase a piece of land or pay for construction. Therefore, you must consult a mortgage broker whenever you plan to buy a house as he or she can guide you in the right direction.
You can use the grant as a deposit to get the loan. In addition to that, you must also look at the timing for when you will receive a grant and when you should pay the deposit. The broker can help you sort the matter out efficiently without experiencing any delay.
How to Apply for QLD First Home Buyer Grant?
Building societies, financial institutions, and banks are the approved agents of the Queensland Office of State Revenue. Speak to our team of mortgage brokers directly who will put you in contact with the best lender for you. After they are contacted, the grant can be arranged for you.
You can also take an alternate route by downloading an application form. Fill in the form and submit it directly to the office once the construction is complete and you will receive a building certificate for a new house.
All in all, before you plan to buy a house or apply for the grant, it is best to seek the guidance of your mortgage broker as he or she can give you reasonable advice based on their years of experience in the real estate market.
Chat to Hunter Galloway today on 1300 088 065 or email Nathan at Nathan.Vecchio@HunterGalloway.com.au