Purchasing Your First Home

 Wednesday, March 08, 2017

Purchasing Your First Home

It’s natural to be a little nervous when purchasing your first home. There’s no denying it’s a big commitment, but it doesn’t have to be daunting. You only buy your first home once and it’s something you’ve looked forward to for years so we think it should fun, exciting and rewarding.

Cosgriff Lawyers is here to guide you through the whole process and to make it as simple for you as possible. Here are a couple of incentives to help you get your first home sooner.

First Home Owner Grant

The First Home Owner Grant (FHOG) is a government initiative to help first homebuyers into the property market. It’s a genuine, one-time grant that never has to be repaid. In both Victoria and NSW, a FHOG of $10,000 may be available for first home buyers who are building or purchasing a new home, to the value of $750,000. This includes off the plan homes or newly built homes that have not been previously occupied.

You may qualify for the FHOG if you meet the following criteria:

  • 18 years old or over;
  • Australian citizen or permanent resident;
  • You are intending to live in the home for a continuous period of at least six months within 12 months of settlement;
  • You have never owned a residential property in any State or Territory in Australia;
  • Have never received a FHOG in any state or territory in Australia.

From 1 July 2017

In an attempt to boost entry into the housing market, the Victorian Government has just announced that it will increase the FHOG from $10,000 to $20,000 for first home buyers building their homes in regional Victoria. The increased Grant will apply to Contracts entered into from 1 July 2017 until 30 June 2020. The same eligibility criteria listed above apply.

Stamp Duty Concession

In Victoria, stamp duty concessions may also available for first home buyers for homes with a purchase price of up to $600,000 and in NSW stamp duty concessions may be available for first home buyers for homes with a purchase price of up to $650,000. The reduced stamp duty amount will depend on the purchase price.

From 1 July 2017

Further to increasing the FHOG to $20,000 the Victorian Government also announced that the stamp duty will be abolished for first home buyers of properties valued up to $600,000 providing a saving of up to $15,000. Duty will be phased in for properties valued between $600,001 to $750,000.

For more information on purchasing your first home please contact Zoe Broadbent at Cosgriff Lawyers on 5480 6344.