First Home Buyers Benefits

By Sandy Naidu | January 19, 2009

If you are in the market to buy your first home then hurry up. The Federal Government has increased the benefit amount and this increase is only for a limited time - up to June 30 2009. Here are the list of benefits that a first home buyer can get:

Back in 2000, the Federal Government announced a $7000 first home owner grant to all first home buyers. To be eligible for the grant, the property has to be your first home and should be your principal place of residence for at least 6 months after settlement. If you or your partner has owned a first home before then you are not eligible for the grant.

1. First Home Owner Grant Boost: In October 2008, the Federal Government announced a boost to the First Home Owner Grant. This was done to help the first home buyers and also to revive the property market. This is a temporary boost. All property settlements that occur between 14th October 2008 and 30 June 2009, will be eligible for this boost. For this temporary period, the Federal Government has doubled the home owner grant. So now instead of $7000 you get $14,000. But if the property you are purchasing is a brand new property or property that has been significantly renovated then you get $21,000. If it is a significantly renovated property then it must also be the first sale of the property.

To summarise: Between 14th October 2008 and 30th June 2009 for established properties you get $14,000 and for new properties you get $21,000.

This grant will revert to $7000 for all properties (new and established) after June 30 2009.

2. New Home Buyers Supplement: The NSW Government gives first home buyers who are buying a new home or building a new home a grant of $3000. Some of the other states also offer this grant. The amount is usually between $3000 and $5000.

3. Duty Concessions: First Home Buyers do not have to pay any stamp duty for property values up to $500,000. If you are buying a $250,000 property then you save around $7000. If you are buying a $500,000 property then you save around $17,500.

So if you buy a $500,000 house before June 30 2009, then you get a grant of $14,000 for established houses and $21,000 for new houses. Add to this the stamp duty exemption of around $17,500 and the state grants (if any).

For more information about the eligibility criteria visit First Home Buyers

Will these grants/concessions tempt you to buy your first home in the current economic climate…Share your opinions…