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Hefty grants offered by various States and stamp duty exemptions extended to first home buyers in the latest budget have given a big push to first home buyer activity across the country. Thus, it is not surprising that first home buyers comprised 17.2 percent of the owner-occupier market in August, rising to 17.4 percent in September; one of the highest levels in the past couple of years. This also represents a marked increase in first buyer activity that was at a historic low of 13.4 percent at the beginning of the year, 2017.

 
First Home Buyer Grant Tasmania

 

If you are a first home buyer, this could be the right time to purchase your home, with plump first home owner grants being offered by most States that could help you create a sizeable deposit for your first home.


A win-win situation for first home buyers in Australia

Keeping in line with the measures announced in the federal budget this year to boost first home buyer activity in the country, the States followed suit, with Queensland rolling out a $20,000 first home owner grant (FHOG), NSW doubling up its FHOG package to $10,000, and Victoria offering $20,000 to first home buyers who choose to buy in regional Victoria.


Boosting first buyer activity in Australia’s next property hotspot

Many experts have placed their bets on Tasmania to be the next property hotspot in Australia. Indeed, there has been a steady rise in the sales volume in Devonport and Hobart. In fact, Hobart, one of Australia’s most affordable capital cities to buy in, outperformed Sydney and Melbourne this year. The city recorded a quarterly growth of 3.3 percent and a yearly increase of 12.7 percent as per CoreLogic data released for October this year.
Tim Lawless, head of Core Logic RP Data research and analytics team, attributes this to the “renewed housing demand in the form of interstate migration particularly from Sydneysiders and Melbournites.”

And now, with the Tasmanian government offering $20,000 to first home buyers in the State for a limited time, this could be the opportune moment to grab your spot in the city, while the median dwelling price is still low in the area. In Hobart, the median dwelling price was reported to be just under $400,000 in October 2017.


The First Home Owner Grant

The Tasmanian government has extended the $20,000 First Home Owner Grant for another year, from 1 July 2017 to 30 June 2018. Thus, eligible applicants who buy or build a new home until (and including) 30 June 2018, will receive $20,000 from the State towards their first home.
From 1 July 2018, the grant amount would reduce to $10,000.


Check your eligibility for the $20,000 FHOG in Tasmania

 
You can apply if:

  • You are at least 18 years old
  • You are an Australian citizen or permanent resident
  • If you’re buying with a partner or spouse, at least one of the applicants is an Australian citizen or permanent resident to qualify.

 

Other conditions:

  • Neither of the applicants must have owned a property before
  • You must not have received the first home owner grant in any other State
  • You must move into the house within one year of the purchase (or receiving an occupancy certificate, if you are building a house) and reside there for a continuous period of at least six months, failing which, you may be penalised.

 

What kind of property can you buy?
You must either:

  • Enter into a building contract for a new home
  • Build a new house as an owner builder
  • Enter into a contract to purchase a new home.

Besides, if you are building a home, it must be fixed to your land, meet local planning standards, and the construction must be completed within 24 months of entering into the contract.  


Additional conditions to be eligible for the $20,000 grant:

If you buy your house between 1 July 2016 and 30 June 2018 and meet all the criteria as mentioned above, you can receive $20,000 as FHOG, if you:

  • Build your home through a registered builder
  • Build your home as an owner builder (including the relocation of a new moveable building that has not been occupied before)
  • Purchase an off the plan property
  • Purchase a new home

We advise that you are sincere while applying for the first home owner grant. The applications are heavily scrutinised, and incorrect information could lead to rejection of your application as well as additional penalties and fines.

Visit State website to know more.


When is the grant payment made?

The grant is paid at different times, depending on how you apply for it and the type of property you are buying. When you apply through a bank or a lending institution, you can expect the grant on the settlement date in case you are buying a new home or an off the plan property. If you are building with a registered builder, the payment will be made on the laying of the foundation of the house. Owner builders can expect the payment on receipt of the occupancy certificate.

You can use FHOG as a part of the deposit when applying for a home loan. In general, FHOG is not sufficient for the full amount of your deposit. In most cases, you would need up to five to ten percent of the purchase price, along with FHOG, for a twenty percent deposit. Fortunately, we know lenders who offer low deposit loans. Learn more here.


How to apply for FHOG

To apply for the first home owners’ grant, you may lodge your application through your mortgage broker or download the application form and lodge it yourself after the sale process is complete. Apart from the application, you would also be required to submit other paperwork including the proof of your identity and the contract of sale. Alternately, you could directly apply through your lender as well.
 

Remember that the FHOG approval process is stringent and time bound, and one must not lose the benefit simply out of confusion or shying away from taking professional help. Mortgage brokers at HashChing have helped many first home buyers like you purchase their first property with significant savings on their home loans. Read Susan’s story to know more.

 
At HashChing, we have helped hundreds of first home buyers purchase their dream home. Our mortgage brokers provide you most professional guidance, apart from competitive home loan deals from across Australia.

Once you get in touch, an expert will assess your eligibility for FHOG, lodging the application on your behalf, with all the supporting paperwork, in a timely manner, which will save you time and hassle, ensuring you receive the funds on time.

You can learn more about FHOG in different States here.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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