With historically low interest rates available at the moment, now could be the perfect time to get your foot on the property ladder. If you are thinking about buying your first home, you’ll be very happy to hear that there are quite a few government schemes available to you. This will probably be one of the largest investments you’ll make in your life and you will undoubtedly feel a little overwhelmed (and quite excited), so for your convenience, we’ve put together a list of all the incentives available to first home buyer, owner occupiers in Queensland.
First Home Owners’ Grant (QLD)
The Queensland First Home Owners’ Grant offers $15,000 to first-time owners buying or building a new home. The grant is available for properties valued at less than $750,000. In addition, the state government is also offering a limited time $5,000 grant for first home buyers building a new house, unit or townhouse in regional Queensland valued at $749,999 or less. *This short-time offer is only available until 31 December 2020. Here is a link to more details from the Queensland Government about both the First Home Owners’ Grant and the additional Regional Grant schemes along with the specific eligibility criteria.
Please note that some other states also have First Home Owners’ Grants available so if you’re looking to purchase in another state, please feel free to reach out to the team for further information.
The government’s $25,000 HomeBuilder grant is available to eligible homeowners that either build a new home, or substantially renovate an existing home. Homeowners must build a new home valued under $750,000 or spend between $150,000 to $750,000 on renovations of a property valued up to a maximum of $1.50M. The HomeBuilder grant is only available to owner occupiers and a building contract must be signed before 31 December 2020, with construction beginning within 3 months of the contract date. You can find more information here. For eligibility criteria, please head to the government’s website.
Stamp Duty Concessions
First home owners receive stamp duty concessions if they buy a home valued less than $550,000 or vacant land less than $400,000. This concession is applied by deducting a set amount from the usual rate of stamp duty that would apply to owner occupied related purchases. Effectively, this means that you pay no stamp duty if you’re buying a first home worth less than $500,000, with a concessional rate applying to homes valued between $500,000 and $550,000. If you’re buying vacant land, you’ll pay no stamp duty on land valued up to $250,000, with a concessional rate applying for land valued up to $400,000. You can read more about Queensland’s stamp duty concessions here.
Different states have different eligibility thresholds so if you are planning to purchase in another state, please feel free to reach out to the team for further information.
First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme (FHLDS) is a government measure designed to help first home buyers enter the property market sooner. Under this new scheme, the Australian Government will guarantee loans for eligible low and middle income earners who have saved up a deposit of as little as 5% of a property’s value. This removes the need for Lender’s Mortgage Insurance which can be costly. It is noted that there are limited spots with 10,000 allocations available at the beginning of each financial year (July).
You can find more information here.
First Home Super Saver Scheme
Through the First Home Super Saver Scheme (FHSSS), first-home buyers may be able to use their superannuation as a tax-effective way to save for part of their home deposit. Eligible first home buyers, aged 18 or over, who make voluntary super contributions of up to $15,000 per financial year into their super, can withdraw these super contributions to put toward a home deposit. The idea is that first home buyers will be able to grow their deposit more quickly with this scheme, while potentially reducing the tax they pay. You can find more information on the ATO’s website.
If you are a first home buyer, these schemes along with some other lending institution related incentives that have not been shared in this blog are a great way to help make your property dream come true sooner. Our professional and friendly team are here to help, so if you have found the perfect home, or think you’re on the right path but just want some certainty and understanding of what may be available to you, contact one of the Seek Financial brokers for a chat. We are always up to date on all the latest schemes and grants available and have access to a wide panel of approved lenders. On top of that, we also take care of the application process, taking all the headaches & stress away. Having a broker in your corner just makes sense!
The above information is general in nature. It has been prepared without taking into account your objectives, financial situation or needs.