Hi There,
Jason Thomson from Smartline here. I am very excited to be the first official “Blogger” on www.landincairns.com.au . My company Smartline Mortgage Advisers have helped thousands of locals with accessing finance and assisted many into their first home.
Buying land and building a home can be an attractive alternative to buying an existing house or unit. This means that you can build the home that will suit you and your family, however it can be a daunting process with hurdles along the way. The first topic I am going to be discussing on this blog is the First Home Owners Grant, who is eligible, who can access it and what the Federal Government has in mind for ongoing support for first home buyers.
The First Home Owners Grant was boosted by the Federal Goverment last year to encourage people to enter the property market and to stimulate growth in the housing sector. As first home buyers don’t need to sell existing property to purchase their next home, they form an important part of the entire industry! Basically, the grant can be accessed by anyone as long as they have not owned property before, are an Australian Citizen or permanent resident and are not purchasing the property as an investment (i.e. it will be their principal place of residence). This blog will help you access those funds and get your foot on the first step of the property ladder. Remember the Government will be stopping the grant in it’s current form in June this year, so now is the time to be asking your questions to access the grant.
Of course if you have other questions on any other items like stamp duty, accessing finance, hidden fees, then feel free to ask, I would be more than happy to answer any questions you may have.
Lets get this blog started!
Regards Jason.
Hi Jason,
How old do I need to be to get the grant?
Thnx
Hi William. Thank you for posting the first question. Each applicant must be at least 18 years of age when they entered into the contract to which the application relates e.g. building contract or home purchase contract. However, if someone is less than 18, the Commissioner of State Revenue has discretion to pay the grant in appropriate cases. To have your circumstances considered you would need to provide full details and an explanation of the circumstances in writing for consideration. If you or anyone else is in this situation, please let me know and I can provide you with the contact details for correspondence to the Office of State Revenue. Regards Jason.
Afternoon Jason, Mate i was wounding what is the actual process of claiming for the grant.
Cheers,
Ren
Hi Ren. Thank you for your query. As most first home buyers rely on finance to assist them to purchase/build their homes, the lending institution you borrow the money through will take care of the First Home Owners Grant (FHOG) application process on your behalf. Your lending representative/mortgage broker will have the FHOG application form available and should fill this out for you. You should just have to sign it. When your FHOG application is approved, the funds will be available at the time of the purchase (established homes) or slab/foundation stage (for construction). If you are in a fortunate position to buy/build without reliance on a loan, then you can claim directly from the Office of State Revenue post-purchase/slab stage of construction.
What is the go when one of you has already owned a home - can you still get the grant
Hi Don. If the house purchase/construction is to be in joint names, then both parties must never have owned a residence previously to qualify for the Grant. And if you try to get around this by buying/building in just the name of the party who hasn’t owned property before, then you’ll be asked if the applicant has a spouse, and if your spouse has owned property, this will also disqualify you from obtain the Grant. A spouse is defined as a person to whom the applicant is married, or with whom the applicant has been cohabiting, on a genuine domestic basis in a relationship of de facto marriage for at least 2 years at the time the application is made.
Also Don, in my line of work, in many cases it is quite often difficult to get sufficient finance approval for people without relying on joint incomes, so trying to get around the rules for qualifying for the Grant can be challenging if attempting to do it under one name. However everone’s circumstances are different, and it depends on the income level, proposed price/cost, and what other commitments they have. On that note, if anyone would like an obligation free assessment of their borrowing capacity, please contact me outside of this blog via phone 0740410055 or email jthomson@smartline.com.au. Regards Jason.
First Home Buyers! You would more than likely have heard by now that the Reserve Bank of Australia (RBA) have further slashed the official cash rate by another 1.00% today. This cut takes the total rate reduction over the last five months to a massive 4.00%. And they are still suggesting further cuts could be on their way! I’m not old enough to know this, but they are saying rates are now at their lowest level since 1964!!! No one should be complaining about housing affordability now. It’s a buyers market out there, and combined with low interest rates and the First Home Owners Grant of up to $21,000, now is the time to seriously consider investigating your options. As a guide, here are some weekly mortage repayment amounts:
$200,000 - $254pw
$250,000 - $318pw
$300,000 - $381pw
$350,000 - $444pw
$400,000 - $508pw
Please let me know if you’d like a cost and obligation free assessment of your borrowing capacity to enter the property market.
Hi Jason
Can I apply for the First Home Buyers Grant for the purchase of a block of land to may be build on later?
Hi Allana. The quick answer is ‘no’. The First Home Owners Grant is only available for your home i.e. purchase or construction of a home that you will occupy as your primary place of residence. If you purchased land now, then the earliest you’ll be able to access the Grant is when the slab/foundation’s are laid when you build. Regards Jason.
Hey Jason,
Will I be entitled to a first home buyer’s grant if I’ve already purchased a block of land? my boyfriend and I are halves in a block of land in Redlynch, though we’re trying to sell it, in a perfect world if the block sells and I than go out and purchase a unit will I be entitled to the grant in this case for the unit?
Thanks
Lacey
p.s. my boyfriend has already used his first home buyers grant so the purchase of the unit will solely be in my name..
Hi Lacey. Thank you for your question. Firstly, owning land or previously owning land will not create any problems with obtaining the grant. The issue you may be confronted with regarding your future plans of purchasing a unit is that your boyfriend has previously obtained the Grant. In your application for the Grant you’ll be asked if you have a spouse, and whether of not your spouse owns a home, or has previously owned a home (and obtained the Grant). If the answer to this is yes, then you will be disqualified from obtain the Grant. A spouse is defined as a person to whom the applicant is married, or with whom the applicant has been cohabiting, on a genuine domestic basis in a relationship of de facto marriage for at least 2 years at the time the application is made. Hope this answers your queries Lacey. Regards Jason.
Hey Jason,
I recently went into a contract to purchase a house. The house is under my name as my fiance had previously received the first home owners grant when he purchased a place before he met me.
As this will be my first house and we are not yet married and we are not in a de facto relationship, will I be qualified for the first home owners grant?
When we are married, does that mean we have to pay it back?
Thanks Linda
Hi Mate,
IS it possible for me to buy a block of land, get approval for two units in my name & also for my parents/or relative to finance the loan on another 2 units-( Looking at buying a block that will suit 4 units?) and for me to still obtain the First home owners grant? Do i need to sign a contract a special way or???
Thankyou in advance..
Hi Linda. I can’t see any issues with you qualifying for the grant. Getting married after you have purchased and received the grant doesn’t mean you’ll have to pay it back either (as long as you occupy the home within 12 months and continue to live there for a minimum of 6 months). All the best with the wedding Linda. Regards Jason.
Hi James.
Your question was a little complex so I went straight to the Office of State Revenue, who administer and decision grant applications, with your question. They haven’t really answered your question, but here is their response:
Under section 69A of the Act, the commissioner may refuse an application if
satisfied a disqualifying arrangement exists:
1. Section 69A(1) - where a relative, who is ineligible for the grant,
provides financial help to the applicant and will use the home frequently
or to a significant extent, and the Commissioner is not satisfied there are
genuine family reasons for the arrangement.
2. Section 69A(3) - where the Commissioner is satisfied there is an
arrangement, the sole or main purpose of which, is to obtain the grant
rather than acquiring a home.
The Office of State Revenue can not provide legal advice with regard to
hypothetical situations regarding the grant.
An applicant’s eligibility for the grant can only be determined once a
complete application and all supporting documents have been lodged.
If you need additional information, please contact this office by return
e-mail or phone 1300 300 734.
James, the only suggestion I can give you is to phone the Office of State Revenue directly on 1300 300 734 to discuss with them in more detail.
Regards Jason.