Everything You Need to Know About the First Home Owner Grant It is no secret that real estate prices throughout Victoria have skyrocketed in recent years. High purchase prices have put home or apartment ownership out of reach for many people. In an effort to help buyers get into their first home or apartment, the Australian government created the First Home Owner Grant scheme. This grant scheme encourages home ownership by offering a financial contribution from the government designed to offset the effect of the stamp duty on home ownership. For many first-time off the plan buyers, the First Home Owner Grant scheme is a critical component to successfully securing their new apartment. While this program is still beneficial, the grant program has undergone dramatic changes since its introduction. While initial grants were substantial, the scheme has seen a declining trend in grant amounts in recent years. It is recommended that buyers interested in taking advantage of the grant scheme, act quickly before benefits are reduced even further under the new government. While it is a national program, each state or territory manages its own program. This article deals exclusively with grants for qualifying homes and apartments in Victoria. Who Is Eligible? In order to qualify for the grant program, you and your spouse/partner: • must be a natural person • at the time of settlement or completion of construction, must be at least 18 years of age • must not have received a grant in any State or Territory of Australia • before 1 July 2000, must not have owned any interest in any residential property anywhere in Australia • after 1 July 2000, must not have lived in in any residential property, for six or more consecutive months, in which you acquired any relevant interest In addition, at least one applicant must be a permanent resident or Australian citizen at the time of settlement or completion of construction. Which Homes Qualify? The grant program covers only newly constructed or off the plan homes and apartments in Victoria. As of 1 July 2013, established homes are no longer eligible for grants. In addition, there is a maximum cap of $750,000 for contracts entered into on or after 1 January 2010. The only exception is for homes that are on, or will be built on, primary production land. How Much Is The Grant for an Off the Plan Apartment?
When the grant scheme was first introduced, off the plan apartments were eligible for grants of up to $32,000. However, this amount has now declined to $7,000 - $10,000, depending on the contract date. This declining trend of grant amounts makes it critical for buyers considering an off the plan apartment, to move quickly so that the maximum grant can be secured. When Will I Receive My Grant? When your grant is paid depends on the type of transaction involved and how you applied for the grant. You can apply either through an approved agent before settlement or directly through the Victoria State Revenue Office (SRO) after settlement occurs. When you purchase an off the plan apartment and apply through an approved agent, the grant is paid at the date of settlement. If you apply via the SRO after settlement occurs, the grant will be paid to your nominated account within 14 days or the application’s receipt. The Victoria State Revenue Office maintains a comprehensive website that explains all aspects of the First Home Owner Grant program. If you are a first home buyer or an investor looking for off-the-plan projects, we encourage you to take a look at our website www.dovetaildevelopments.com.au/projects