Government first home buyer schemes vary around the country, and there have been changes to each of them over time.
In order to boost state construction they are generally favoured towards off-the-plan apartments and new home builds.
The grants offered to first home buyers are frequently changing so here is where the eastern states are at with their current grants and incentives, and how you go about applying for them.
First home buyers building or purchasing a new home are eligible for $10,000 as long as the value of the new home is less than $750,000.
Like all states, grants can be applied for via the Office of State Revenue or through your lending institution.
If you apply through the Office of State Revenue the grant can be paid as soon as the necessary documents are received.
If you apply through the lending institution the grant is usually paid on settlement.
NEW SOUTH WALES
The NSW government offer $5000 as part of their New Home Grant scheme for off the plan homes that are worth less than $650,000. This offer is open to both investors and owner-occupiers.
To apply for this grant in NSW you must make the application within three months of the first contract being signed. The grant is paid as credit on the purchaser’s stamp duty.
If the stamp duty is over $5000 the grant won’t cover it and the difference is paid by the buyer.
The grant can be claimed more than once on multiple properties but the properties have to be new and there is only one grant per property.
On top of this, the NSW government also offer a First Home Owner grant of $15,000 for newly built or bought homes worth less than $650,000.
In this grant, the buyer must live in the new property for at least six months.
This grant is being reduced to $10,000 on January 1, 2016.
Offer a Great Start Grant of $15,000 for first home buyers building or buying a new home for properties worth less than $750,000.
The buyer must move into the new home within one year of its completion and live there for at least six months to be eligible for the grant.
The South Australian government also offers a first home owner’s grant of $15,000 for a new build or buying a new home, but the property must be worth less than $575,000 to claim.
Like the other states, the buyer must live in the property for a continuous six months to claim the bonus.
There are also stamp duty concessions for off-the-plan buyers in South Australia. Currently, for contracts entered before June 30 this year there is a full stamp duty concession of up to $21,330 for off-the-plan purchases, but this will change to a partial concession after this date and up to June 30, 2016.
The stamp duty concession is for certain apartments in a certain area only so check the Revenue South Australia website to find out if your property is in this area.