Are you a first home buyer who is overwhelmed and doesn’t know where to start?
There’s a lot to think about when looking at getting into your first home. It’s a big step into the real world, and can be the difference between taking control of your retirement funding now or leaving it until it may be too late.
You could be interested in buying a brand-new home, or even building one yourself, in which case you may be eligible for a First Home Owners Grant (FHOG). However, eligibility varies from state to state.
What are you eligible for?
In Victoria, for example, the home must be one that hasn’t been sold as a residential premise before, as stated by the State Revenue Office of Victoria. The grant is $10,000, but the value of the patch of land must not be in excess of $750,000, which is the same as in New South Wales, according to the Office of State Revenue in the state.
There is a difference in what constitutes a ‘new’ property, however. In New South Wales, extensive renovations carried out by the previous owner may qualify the home as new, or a ‘knock down and rebuild’ job is intended. Whatever your intentions are with your first home, a buyer’s agent will be able to tell you exactly what you’re eligible for, what you’re allowed to do and which regions will offer the best value for the specifications you’re after.
The scheme was only introduced recently, and applies to all property purchases for new home owners from January 1, 2016. Many potential first home buyers might be looking at an existing home as well, and there are equally as many factors to take into consideration with one of these.
Taking the first step doesn’t have to be as hard as many people say it is, and it certainly won’t be if you’re heading toward a buyer’s agent.