Comments on: Hot Topics Blog - First Home Buyers Grant

By: Jason Thomson

Jason Thomson — Thu, 22 Jul 2010 01:17:07 +0000

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.

By: Jason Thomson

Jason Thomson — Fri, 16 Jul 2010 05:50:01 +0000

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.

By: James

James — Mon, 12 Jul 2010 04:37:11 +0000

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..

By: Lindy

Lindy — Wed, 16 Jun 2010 11:02:49 +0000

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

By: Jason Thomson

Jason Thomson — Sun, 15 Feb 2009 07:17:11 +0000

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.

By: Lacey

Lacey — Sat, 14 Feb 2009 01:03:21 +0000

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..

By: Jason Thomson

Jason Thomson — Wed, 11 Feb 2009 03:02:46 +0000

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.

By: allana

allana — Wed, 11 Feb 2009 00:51:44 +0000

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?

By: Jason Thomson

Jason Thomson — Tue, 03 Feb 2009 10:54:40 +0000

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.

By: Jason Thomson

Jason Thomson — Fri, 30 Jan 2009 03:46:18 +0000

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.