Buying your first home might be easier than you think thanks to the Queensland Government’s First Home Owners’ Grant.
It provides $15,000 towards buying or building your new home, unit or townhouse, as long as it’s valued at less than $750,000. The application process is relatively straight-forward, but first let’s consider whether you’re eligible and how much you‘re entitled to.
If you’re eligible for the First Home Owners’ Grant in QLD, the application process is relatively straight-forward. Picture: Getty
Are you eligible for the First Home Owners’ Grant?
You must be 18 years or older and an Australian citizen or permanent resident; or applying with someone who is.
The home you’re buying or building must also be new, and you and your partner must not have previously owned and lived in a property anywhere in Australia.
The value of your home, including the land, must be less than $750,000. You must also move in and make it your principal place of residence within one year of the completed transaction and live there for at least six months.
If you are buying a house and land package, or vacant land on which you intend to build, you’re also eligible.
If you’re planning to buy vacant land to build on, you could be eligible for the First Home Owners’ Grant. Picture: Getty.
What if you’ve owned an investment property?
Interestingly, if you’ve owned an interest in residential property since 1 July 2000, which has been solely used for investment purposes, you may still be eligible for the grant on a subsequent property.
You must prove you haven’t lived in the property and provide evidence that covers the entire period of ownership. For example, tenancy or lease agreements, electricity or phone accounts or tax return details.
How much is the First Home Owners’ Grant in QLD?
As of 1 July 2018, the First Home Owners’ Grant has been reduced from $20,000 to $15,000.
The value of the grant depends on your contract date; if you signed a contract between 1 July 2016 and 30 June 2018 you are eligible to receive $20,000. However, for contracts dated October 2012 to June 2016, and July 2018 or later, you will receive $15,000.
If you’re building, you must apply within one year of the new home being completed. Picture: Eugene Hyland.
How to apply for the grant
If you’re building, you must apply within one year of the new home being completed. Only one application is required, regardless of how many applicants there are. If you have a partner they must be included, either as an applicant or non-applicant spouse.
All information supplied must be signed by all applicants, witnessed, completed in full and accompanied by proof of identity, house contract and final inspection certificate.
If you need the funds for settlement or want to get it as soon as possible, you can apply through an approved agent.
Are you entitled to a First Home and First Vacant Land Concession?
Further financial help is available by claiming a First Home Concession for transfer duty when buying your first residence; it only applies to a home valued under $550,000, and eligibility criteria applies.
You can also claim the First Home Vacant Land Concession for transfer duty when buying land on which to build your new home, as long as it’s valued under $400,000. It’s calculated at the transfer duty rate minus the first home vacant land concession amount. For example, if the land you buy is less than $260,000, you won’t pay any stamp duty. Follow the link to this calculator for more information on stamp duty concessions.
It is important to be very clear about what you are entitled to before you buy your home. You should seek tailored professional advice on your circumstances or you can find more information here.
This article was originally published on
20 Sep 2018 at 12:01am
but has been regularly updated to keep the information current.