If you are looking to purchase your first home, then there are a number of benefits for those considering a house and land package. Currently, the state and territory governments have a number of initiatives in place to help give first home buyers, and the construction industry, a boost. Some developers will also include incentives for new buyers that may include furniture packages, further discounts or some form of assistance.
However, one of the greatest lures is the government grant that in some cases amounts to thousands of dollars of funds for purchasing. Many buyers of established homes may not be eligible for these grants. First home buyers may also be eligible for reduced amounts of stamp duty and other savings; however these finer details do vary from state to state. Remember that grants do regularly change, so it pays dividends to keep an eye on any scheduled dates for reductions or increases in the available grants and concessions.
In the ACT, first home buyers are eligible for $12,500 if they are buying a house and land package. There is a cap limit that applies, which covers the total value of eligible properties, which for the ACT is $750,000.
New South Wales house and land buyers are offered a $15,000 grant as assistance under the First Home Owner Grant (New Homes), which will reduce to $10,000 on 1 January 2016.
Victorians are able to obtain a grant up to $10,000 for those that are eligible. However, the home must not exceed $750,000 in total (for both the house and the land), otherwise the grant will not apply.
A total of $15,000 is available for those in Queensland looking for house and land packages, provided that the property is priced under a $750,000 threshold.
From the beginning of this year, only those who are looking to buy new, including a house and land package, will be eligible for the First Home Owners Grant scheme that was initially introduced in 2000. No threshold applies, and $26,000 is up for grabs.
In Western Australia, a $20,000 boost is potentially available. Different caps do apply, however they are locality-based.
In Tasmania, a $20,000 First Home Builder Boost is available for those looking to buy house and land packages.
For South Australian homes that do not exceed $575,000 in value, a $15,000 grant is available.
Usually, for house and land developments, the grant will be paid to the first home buyer following the completion of the foundations of the home. This does vary from state to state and it’s worth knowing when you will be receiving the funds.
It’s also worth noting that there is a requirement to live in the home for a certain period of time after the home is completed. You will also be required to submit your application for the first home owner’s grant by a specific stage in the process. Call your relevant authority, usually the treasury or revenue office, for clarification where necessary.